Alleged damage to Michael Flatley’s Co Cork period mansion will cost €30 million to repair, some €5 million more than previously claimed, the Commercial Court has heard.
The former Riverdance star has submitted a surveyor’s report in support of his claim that there are unsafe levels of toxic chemical residue at Castlehyde manor, including on the wall surfaces in the pool, spa and cinema areas.
The survey letter outlines that the ceilings, which are inset with decorative gold, have been extensively damaged by contamination, fire and smoke and must be replaced in keeping with heritage specifications.
Among the €30 million repairs provisionally estimated by a construction costs consultant, is €3.9 million for woodwork, €2.2 million for bespoke plaster works, €2.5 million for decor and €3.5 million for finishes. Some €9.8 million has been recommended for demolition-related costs and “isolation works” at the house, which is just outside Fermoy.
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Due to the extent of surface repairs required, the surveyor advised that further investigations are needed to establish the level of structural contamination.
The figures come in response to questioning by Mr Justice Denis McDonald last week of the “very broad brush” assertion that repairs “could be in the region of €25 million”.
Mr Flatley’s barrister, Ronnie Hudson, instructed by Maxwell Mooney and Company Solicitors, said on Monday that an architectural letter has now been submitted showing the works could cost €30 million.
Mr Flatley claims the unsafe levels of chloride residue are due to PVC combustion in a 2016 fire at the estate and that the alleged main renovation contractor, Austin Newport Group Ltd, was aware of a residue issue. Austin denies the claims.
Mr Flatley is suing Austin and three insurance underwriters: MS Amlin Underwriting Ltd, AXA XL Underwriting Agencies LTD and Hamilton Managing Agency Limited alleging negligence, endangerment, misrepresentation and breach of duty and contract.
A fourth insurer, Hiscox SA, which has an Irish address at Sir Rogerson’s Quay in Dublin 2, was added to the case this week to seek indemnity against it over alleged damage to the property.
All of the allegations are denied.
The judge was told Hiscox wants to join the other insurers in seeking to have the case referred to out-of-court mediation due to a clause in an alleged €3.9 million settlement of a claim by Mr Flatley on his insurance policy over the fire.
The court heard the proceedings were not properly served on the final defendant, London-based David Cushion, who is being sued for alleged negligent misstatement and breach of contract over allegedly acting as Mr Flatley’s accountant and insurance broker.
Neil Steen SC said his client, Mr Cushion, cannot understand why he has been drawn into this case and is “adamant” he has no responsibility for any of the alleged issues. He cannot understand why he has been named personally as he has at all times been a partner of MSE Business Management LLP, the court heard.
Mr Steen, instructed by Beale & Co, told the court he will be bringing a motion seeking to have the case dismissed against his client for failing to disclose a cause of action. He said Mr Flatley’s agent, Des Walshe, previously told Mr Cushion the proceedings would be discontinued against him.
Mr Hudson told the court his client will not be withdrawing his case against anyone at this stage.
The judge adjourned the case for one week.
The Lord of the Dance star claims he has invested more than €29 million since acquiring the property in 1999.
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