TALKS ARE under way between property developer Paddy Kelly and a former business partner in an effort to resolve a long and bitter legal dispute arising from a share purchase agreement.
If the case is resolved, Hugh McGivern, Seafield Road, Clontarf, Dublin, an insurance broker, may no longer proceed with an application for an order requiring Mr Kelly to provide a full statement of his assets and liabilities within and outside Ireland.
Mr Kelly, Shrewsbury Road, Dublin, told the Commercial Court on March 15th in an affidavit that his liabilities exceed his assets and he was considering the possibility of a bankruptcy arrangement when consenting to an order requiring him to pay some €131,000 to Mr McGivern.
He also said he may be unable to meet the debt to Mr McGivern.
A number of issues in the case, including Mr McGivern’s application for judgment for a further €300,000, payment of all rental arrears on certain premises and an order requiring Mr Kelly disclose his assets and liabilities, remain outstanding.
In an affidavit yesterday, Mr Kelly rejected as untrue a suggestion by Mr McGivern that he had been offered a loan by Anglo Irish Bank to discharge all liabilities arising from the court proceedings.
Mr Kelly also said Mr McGivern was maintaining claims not “fully crystallised” and in so doing, was seeking to prefer himself “over my other substantial creditors”.
Mr Kelly was responding to an assertion by Mr McGivern that, since the case was before the court last, he had been told by a “reliable source” with Anglo Irish Bank that Mr Kelly was offered, but had refused, a loan facility to discharge all the liabilities arising in the court proceedings.
Mr McGivern also claimed assertions by both Mr Kelly and his son, Simon, of doing their best to resolve the issues were not supported by the facts.
He said he had received text messages from Simon Kelly on March 17th last which he regarded as “threatening”.
In an affidavit, Simon Kelly said there was no basis for Mr McGivern’s assertions about the efforts of himself and his father or the texts, and added Mr McGivern had failed to refer to additional texts.
He believed Mr McGivern had now taken matters too far and the efforts to address matters with landlords had not been assisted by the court proceedings and the attendant publicity.
When the case was mentioned to Mr Justice Peter Kelly yesterday, he was told by John Hennessy SC, for Mr McGivern, there had been some talks between the sides and they wanted the proceedings adjourned to April 27th to facilitate those.
Adjourning the case, Mr Justice Kelly noted the affidavits disclosed further “troubling events”, including on St Patrick’s Day.
In an affidavit, Mr McGivern said he had received text messages from Simon Kelly at 8.40am on St Patrick’s Day which, in an apparent reference to various media reports that Paddy Kelly was considering bankruptcy, stated: “See all the papers, Thanks, Somebody had to be first to attack Paddy so maybe it is apt that it is you. Simon.”
Mr McGivern said he replied by text that he had “no hand, act or part in the newspaper article” and Simon Kelly responded: “It was your motion. Sleep well knowing who you truly are. Good luck with the future.”
Mr McGivern, owner of the firm McGivern Flynn, had initiated his proceedings in June 2007 against Paddy Kelly arising from a share purchase agreement of November 2006. Under that, Mr McGivern agreed to sell to Mr Kelly shares he owned in four companies.
