A court action aimed at compelling developer Bernard McNamara pay €7.5 million to five fellow shareholders in a company has been resolved, the Commercial Court was told today.
The case arose out of the coming together in 2004 of Mr McNamara and five other people - three businessmen, a tax consultant and a banker - to acquire properties within a site adjacent to Grafton Street, Dublin, so that a major commercial development could be built there.
Mr McNamara was sued by the other five arising from an option deed of September 2004 under which they claimed they granted Mr McNamara the option to require them to sell shares in a company set up to carry out the development at a price in accordance with that deed.
The company was Novorstan Ltd, with offices at Clanwilliam Court, Dublin, and its shareholders include Mr McNamara, Ailesbury Road, Dublin 4; Gary Smith, Hazelhatch, Newcastle, Co Dublin; Ivor Dougan, Booterstown, Co Dublin and Paschal Taggart, Fitzwilliam Square, Dublin.
The other two shareholders are Terry Cooney, a tax consultant of Fitzwilliam Square, Dublin; and Shane Taggart, a banker, with an address at Brompton Road, London.
Michael Cush SC, for the five, told Mr Justice Peter Kelly yesterday that, following discussions, the matter had resolved. Mr Justice Kelly agreed to list the case for mention only in a week.
In their action, the five claimed the minimum amount due to them was €7.5 million and that Mr McNamara had no bona fide defence to their claim for that amount.
They claimed Mr McNamara in September 2006 exercised his option requiring them to sell their shares but they expressed dissatisfaction with a valuation put on the properties and an independent valuation was later secured by agreement between the
sides.
They notified Mr McNamara in August 2008 of their intention to waive in full any entitlement to have the option price determined at more than €7.5 million and that they were accepting €7.5 million as the option price for the purpose of the option deed. They also claimed Mr McNamara is required to pay €109,000 for the independent valuation.
In late August, Mr McNamara's solicitors had replied the plaintiffs could not unilaterally vary the procedures set down in the option deeds. The plaintiffs' solicitors responded that if the shares were not purchased by September 26 last, proceedings would be served on Mr Mc Namara.
It was claimed some €3.17 million was due to Mr Smith with the same amount due to Mr Dougan. Paschal Taggart claimed to be owed €385,000 while Terry Cooney and Shane Taggart each claimed to be owed €384,750.