A company has claimed before the Comercial Court it is owed some €3 million by businessman Harry Crosbie arising from the development of the Grand Canal Theatre in Dublin’s docklands.
Ramford Ltd, a company controlled by developer Joseph O’Reilly, has brought proceedings arising from an agreement of June 29th 2007 between his company and Mr Crosbie to develop the 2,000 seat theatre.
Mr Crosbie owns the lease of the theatre at Grand Canal Square, designed by architect Daniel Libeskind, which opened last March.
The proceedings opened today before Ms Justice Mary Irvine and are listed to run for three days.
In outlining the case, Mary Connaughton SC, for Ramford, said his side contended they were entitled to rely on the express terms of the June 2007 contract, and rejected claims there was any “concluded variation” of that contract.
The primary disagreement was about what had factually occurred at meetings between the sides concerning the development, he said.
Under the June 2007 agreement, Ramford claims it was to design and construct the theatre, and to ensure various theatre works were designed, carried out and completed.
It claimed Mr Crosbie undertook to furnish a contract sum of €10 million on the completion date, and also to discharge additional amounts paid by Ramford for the purchase and installation of fixtures, fittings and equipment (FF&E).
It is claimed it was agreed, if the direct and vouched costs of the FF&E exceeded €6.5 million, Mr Crosbie would pay the additional amount within 10 working days from receipt of the relevant invoices provided the FF&E were installed in accordance with the agreement.
Ramford claims it had spent some €9.4 million on FF&E by July 2009 when a dispute arose between the sides as to liability for some €2.9 million of that amount.
Ramford claims it then sought to have that matter dealt with by an independent professional, as provided for in the agreement. Mr Crosbie, however, maintained the matters in dispute were not appropriate for determination by the independent professional and asked Ramford not to nominate an independent professional unless it had a declaratory order to that effect from the High Court.
The President of the Law Society, on the application of Ramford, had nominated John Gore-Grimes last December as the independent expert but solicitors for Mr Crosbie said they did not accept the nomination.
