A €9.7 MILLION judgment has been entered at the Commercial Court against bankrupt former Fianna Fáil councillor Gerard Killally in an action by a retired Garda superintendent and other investors over an alleged land deal “scam” in Co Offaly allegedly promoted by Mr Killally.
Judgments in amounts totalling €9.7 million were entered yesterday by Mr Justice Michael Peart against Mr Killally and a company, Charterhouse Mortgage Centre Ltd (in voluntary liquidation).
Mr Killally was declared bankrupt after the action was initiated and the official assignee in bankruptcy later said he would not be participating in the case.
Judgment in default of defence was previously granted against Mr Killally and Charterhouse, with damages to be assessed later.
Mr Justice Peart yesterday made several orders and declarations arising from a settlement of the action by retired Garda superintendent Peter Wheeler and other investors against Mr Killally, a firm of solicitors and others over the Mount Lucas land deal in which Mr Killally allegedly made secret profits.
It was alleged that Mr Killally, unknown to the investors, acquired land at Mount Lucas, Daingean, for some €4.7 million and arranged a scheme under which they were sold to the investors for €10.6 million in May 2007 at a time when they believed Mr Killally was a co-investor.
Mr Wheeler, two of his brothers, six other investors and two companies had sued Mr Killally, a firm of solicitors, financial advisers and others over the deal, completed in May 2007. Mr Killally did not participate but the other defendants denied the claims.
Mr Wheeler had told the court that he had trusted Mr Killally completely when considering whether to invest as Mr Killally, who was chairman of Offaly County Council, had run in general elections and was of standing in the community.
The case had opened in March 2011 and heard a deal of controversial evidence, including allegations against various solicitors in connection with the handling of the deal.
It was later adjourned for mediation talks and ultimately compromised in circumstances including agreements reached with insurers RSA and the Educational Building Society.
EBS had provided loans related to the Mount Lucas site but was not a party to the case.
Against that background, Ronan Murphy SC, for the plaintiffs, asked the judge yesterday to strike out the case against solicitors John Bourke and Francis O’Doherty, practising as Bourke Company, Drimnagh Road, Walkinstown, Dublin.
He also secured orders striking out the case against other defendants – Command Managed Services Ltd; two of its directors, Cyril Keegan and Cliff O’Brien, and Command Private Clients Ltd.
Mr Murphy said the terms of settlement were confidential subject to certain matters that had to be addressed by the court.
