A company involved another cancelled international protection accommodation centre has brought Commercial Court proceedings against the State.
It is the fourth such case in recent months following the transfer last May of responsibility for such centres to the Minister for Justice, Home Affairs and Migration.
Civic Projects One Partnership LP, acting through its general partner Civic Projects One Holdings Ltd, is suing over the repudiation of a contract to convert a four-storey office building at Fumbally Square, Dublin 8, and an enclosed courtyard building at Fumbally Court into a 484-person accommodation centre.
Civic Projects is the successor in title to BCP Management DAC, acting as manager and on behalf of BCP Investment Fund and acting solely in respect of its sub-fund BCP Real Estate Value Add Fund (REVAF).
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The dispute relates to contracts originally entered into by REVAF with the Minister for Children, Disability and Equality who had responsibility for migrants arriving here before that role was taken over by the Minister for Justice. Civil Projects case is against both ministers.
Civic Projects estimated a €44 million income over two years − with an option extend for two more years − from payments by the State for the facility. It says it has incurred €9 million in completing works to make it ready to receive occupants. It says its total claim for damages exceeds €23 million.
On Monday, Mr Justice Mark Sanfey admitted the case to the fast track commercial list on the application of Paul Gallagher SC, for Civic Projects, and on consent from Eithne Corry BL, for the defendants.
The judge adjourned the matter to next June with a for mention date next month as the case is to go to mediation. The judge approved directions for the progress of the case and said the court could be apprised next month of the situation in relation to mediation.
In an affidavit seeking entry of the case to the list, Thomas Nicholas Cullen, director of Civic Projects partnership, said the Fumbally office buildings were largely vacated during the pandemic with most of the remaining tenants seeking exits and/or indicating their intention to leave on expiry of the leases.
REVAF recognised the benefits of providing badly needed accommodation, in the context where international protection applicants were sleeping in tents across Dublin, and the conversion of an underutilised office building to an accommodation centre was considered an efficient solution, he said.
The works that were carried out included the demolition and strip-out of each conversion floor of each building including lifts, lobbies and toilets. There was also the installation of partition studwork along with shared kitchen facilities on each floor and installation of shared bathroom and shower facilities.
On July 10th last, Mr Cullen and a colleague were informed “without any forewarning or prior indication” that the Minister for Justice had decided a few weeks earlier that no new international protection accommodation centres would be opened and a statement to that effect would be made in the Dáil.
“This came as a huge shock to me and my colleague”, he said.
It was clearly at odds with the terms of the works contracts, he said.
