The development of a proposed £35 million hotel in central Dublin is in danger of collapsing if a deal to buy a number of properties does not close before August 29th, the High Court has been told.
Mr Justice Peter Kelly heard that Mr Garrett Kelleher, a property developer, was getting finance from lending institutions, which depended on his solicitors obtaining title to properties which would be used in the building of a new hotel on the junction of Parnell Street and Moore Street.
Mr Richard N. Kean, counsel for the development company, Holridge Ltd, and Mr Kelleher, of Appian Way, Ranelagh, Dublin, said that on July 3rd a lis pendens (a legal device flagging the fact there are court proceedings concerning the properties) had been registered by the seller, Mr Ronan O Caoimh.
He said Mr O Caoimh had issued a summons claiming specific performance of an alleged agreement between the parties relating to the closing of all of the property deals.
Mr O Caoimh claims Mr Kelleher agreed to sell him 24.99 per cent of Holridge Ltd and that the properties bought would be transferred to Holridge Ltd. Mr Kean said Mr Kelleher vehemently denied any agreement with Mr O Caoimh on any contract.
It was his client's "dramatically urgent" wish to have the proceedings struck out as vexatious.
Mr Kean said the lis pendens would prevent Mr Kelleher getting loans and would jeopardise applications for planning permission. He told the court there was a substantial number of properties were involved and a huge personal investment for Mr Kelleher.
O Caoimh seeking to have the lis pendens vacated on a voluntary basis. Mr Justice Kelly said Mr Kelleher's solicitor had been told on July 16th that Mr O Caoimh was not agreeable under any circumstances to removing the lis pendens. He asked when the motion seeking yesterday's relief from the court had been issued.
Mr O Caoimh's counsel said the motion had been served on his clients at 5 p.m. last Friday. A 100paragraph affidavit grounded the application and he sought an adjournment to deal with it. The first he heard of the August 29th closing was in court.
Mr Kean said the other side knew that if the sale was not completed by then they would be seeking specific performance of an agreement that did not exist.
Mr Justice Kelly said as affidavits had not been completed, there was no question of the motion proceeding. "It has been represented to me that the matters involve a major transaction of £35 million in which the closing has been fixed for August 29th," he said. It seemed strange that "this application was not brought long before now".
Since the evidence grounding the application was incomplete he would grant the adjournment. He ordered the defendants to complete filing, swearing and service of their affidavits by close of business yesterday and filing of a defence by Tuesday next. He granted Mr O Caoimh until next Thursday to put in replying affidavits. He listed the matter for hearing before the vacation judge on Monday week, August 18th.