An action over the alleged involvement of an engineer and financial consultant in providing financial and planning services for lands in Co Meath has been taken before the High Court.
The proceedings have been taken by Mr Ronald J. Bergin, an engineer, of Annefield, Taney Road, Dundrum, Co Dublin, and by Mr Roderick Brennan, a financial consultant, of Coolfore, Ashbourne, Co Meath.
They are suing Mr James Robert Farrell, a builder, of Rockfield Road, Kells, Co Meath and Farrell Homes (Kells) Development Ltd, also of Rockfield Road, Kells, who deny the claims.
The plaintiffs claim that in November 1991, Mr Brennan was approached by the defendants, their servants or agents to provide financial direction and advice to them. It was established that planning applications were necessary and the services of Mr Bergin were retained.
It was agreed by the defendants, their servants or agents that the plaintiffs would be paid once planning permission had been obtained for properties owned by the defendants.
It is claimed that between 1991 and 1997, the plaintiffs undertook and discharged considerable financial and planning services for the defendants, their servants or agents concerning properties owned by the defendants at Headford Place, Kells; Lloyds, Oldcastle Road, Kells; and Balreask, Navan.
It was an alleged express term of the contract between the plaintiffs and the defendants that payments for works done and services rendered would be made by the defendants from proceeds arising from the enhanced value of the lands and business.
Between 1991 and 1997, the defendants, their servants or agents made agreements concerning payments to the plaintiffs for works done and services rendered.
On May 21st, 1992, Mr Farrell agreed to sell to Mr Bergin and Mr Brennan four detached sites at Lloyd, Oldcastle Road, Kells, for the reduced sum of £15,000, it is claimed. The reduced sum was agreed to reflect works done and services rendered.
On January 25th, 1994, the plaintiffs, in consideration for works done to achieve rezoning at Lloyd, were given a letter of undertaking granting them a house each in discharge of fees due, it is argued.
That letter of undertaking was to give the plaintiffs one half of the profits of the development of the project, subsequent to the plaintiffs contributing £20,000 each towards the project's development fund.
Mr Bergin and Mr Brennan claim that on May 27th, 1995, the defendants, their servants or agents, as consideration for works done and services rendered by the plaintiffs, agreed to pay them 10 per cent of the proceeds of the lands at Balreask.
It is claimed these lands were eventually sold for more than £2 million in early 1998.
On August 13th, 1995, the defendants agreed by an irrevocable letter of authorisation to the plaintiffs to finance the construction and sale of two houses at Headford Place, Kells, it is claimed. Notwithstanding the existence of the agreement and continued works and services rendered up to the end of August 1997, the defendants failed, neglected or refused to honour obligations of the agreements.
Among reliefs being sought by the plaintiffs are specific performance of the agreements and a declaration that they are entitled to a 10 per cent share of the proceeds of the sale of the Balreask lands. They are also seeking damages.
In evidence yesterday, Mr Bergin was asked by his counsel, Mr Rory Brady SC, about his first contacts with Mr Farrell in 1992.
Mr Bergin said initially he was to look at the situation. He would do a preliminary check and appraise himself of what could be done and then make a proposal to Mr Farrell on his position and obtain planning permission for the lands.
He said after his side had put proposals to Mr Farrell's side, there were various agreements that they would be paid for it.
Mr Farrell explained that at the time he did not have the monies but once he sold land there would be no problem.
Mr Bergin said his side came very quickly to realise that they could improve Mr Farrell's position.
He referred to various work they did on the lands, dealing with flooding and way-leave, seeking planning rezoning and permission by meeting with council management and elected members and trying to sell some of the lands.
The hearing, before Ms Justice Carroll, continues tomorrow.