Developer Seán Dunne and his family had thumbed their noses at the management company of a major apartments development, the Circuit Civil Court has been told.
Stephen and Seán Dunne, sons of millionaire property developer Seán Dunne, and their sister, Elaine, want to turn six apartments at Merrion Grove, Stillorgan, Co Dublin, into a dormitory for students, Mr Justice Esmond Smyth heard.
Bruce Antoniotti SC, counsel for Merrion Grove Management Company Ltd., told the court the apartments were part of an eight-apartment block which had been bought by a Dunnes-controlled company, Mountbrook Homes Ltd., under tax break legislation for the benefit of the Dunne family.
He said the Dunne block was part of a nine-block development of 124 duplex apartments and houses at Merrion Grove and the Dunnes, of Stewards House, St Helen's Wood, Booterstown, Co Dublin, wanted to convert six of the apartments into accommodation exclusively for students. "The Merrion Grove Management Company Ltd is saying he [Seán Dunne snr] and the other defendants knew or ought to have known that they were in effect thumbing their noses at the management company," Mr Antoniotti said.
He said Mountbrook had started work on the development in 2005 and had to be restrained by court injunction from continuing with alterations until matters of planning permissions, changes of use and consent or otherwise of local residents had been determined by the Circuit Court.
The court heard the lease over the land on which the apartments complex had been built contained a strict covenant whereby the owners would not make any alteration to their apartments without approval in writing of the lessor, which was Merrion Grove Management Company Ltd., and would not use the units other than as single private units.
John Gleeson SC, for Mountbrook and the Dunne family, said the application for a declaration that the consent of Merrion Grove Management Company Ltd was being unreasonably withheld, was confined to works only on six of the apartments.
He said An Bord Pleanála had decided that these particular six apartments were exempt and did not require planning permission.
Mr Justice Smyth has reserved judgment on whether or not the management company's consent to the new development has been unreasonably withheld.