The Nolan Transport family’s High Court case over the alleged misappropriation of their pension funds has been adjourned pending the preparation of a new “road map” relating to outstanding matters.
This is to give an opportunity to deal with claims related to the Nolans’ former pension adviser, John Millett, and over the ownership of development lands allegedly purchased with some of the funds.
The court heard it is alleged that the Nolans’ former solicitor Ciaran Desmond’s Swiss bank account contained not just the Nolan money but money belonging to members of the Kenny property development family who say they own the former Nemo Rangers lands.
It is claimed the Kennys had sufficient money of their own in that account, called ClearVision Solutions SA and held by EFG Bank Zurich, to buy Nemo for €2.9 million.
On Tuesday, a large part of the Nolans’ case ended when the former family solicitor Mr Desmond, a managing partner in McGuire Desmond, Cork, before he was expelled in 2017, consented to judgment of €6.9 million against him. A breach of fiduciary duty to the Nolans over their monies was admitted as part of that judgment.
Mr Desmond, who the court heard blamed others for the loss of the Nolan money, says he intends to prosecute his indemnity claim against three banks and a number of other third parties.
Two other legs of the case remained.
One was the case against Dublin financial adviser Mr Millett, who was brought in by Mr Desmond as pension adviser to the Nolans. The other is against property developers Paul, Dillon and Darren Kenny, of Park Avenue, South Douglas Road, Cork, who say they are the beneficial owners of the Nemo lands through a company called Dildar.
All four men deny the claims against them and the Kennys have also counterclaimed.
Struck out
Mr Millett, the court heard, has submitted a formal application to have the case against him and two of his companies struck out in the wake of the Desmond judgment.
Paul Gardiner SC, for Dildar and the Kennys, argued on Tuesday there was now no longer any remedy available to the Nolans in the “tracing” case in relation to monies concerning the Nemo lands against Dildar and the Kennys.
This is in circumstances where the judgment against Mr Desmond was for the entire claimed amount of losses of €6.9 million.
If the money for the Nemo lands had been “carved out” of that then the actual judgment should have been for €4 million, counsel said.
Mr Gardiner said he did not understand how the Nolans could continue their case about the Nemo land ownership in that regard.
There could be no effective remedy in relation to the tracing claim given that it is expected the judgment against Mr Desmond will be enforced, he said.
It was the Kennys’ case that they provided sufficient monies in Mr Desmond’s Swiss bank account, which also held the Nolan monies, to buy the Nemo lands, he said.
It had not been suggested that there were not sufficient monies and therefore there was no basis for the tracing claim.
It was “doubly problematic” for the Nolans because they had settled their case “with the person [Mr Desmond] they say ran off with their money and entered judgment against him”, he said. His side wanted to know, therefore, what exactly was being claimed against them at this stage.
Gary McCarthy SC, for the Nolans, asked for time to prepare a “new road map” which would outline how the remaining defendants are affected. It was his case that the shares in the Isle of Man company, Dildar, which owns the lands, are held in trust for the Nolans.
Mr Justice Denis McDonald said in those circumstances he would adjourn the case until the week after next to allow the sides exchange submissions on these matters and it may well be the case that it will not resume until the end of the month. The case, before the Desmond element was agreed, had been scheduled to last for 10 weeks.