A legal action against one of developer Paddy Kelly’s companies over rent arrears for a €10 million property at Smithfield in Dublin has been settled.
Chris Kelly, a director of Redquartz Smithfield Ltd, told Mr Justice Peter Kelly at the Commercial Court today the rent arrears of some €123,000 had been paid as had rent up to July next.
The annual rent for the property is some €550,000, the court previously heard.
On that basis, the judge struck out legal proceedings brought against Redquartz by John and Joseph Wickham, owners of the Smithfield property, in which they had sought orders for re-possession of the property.
The judge said the payments made entitled Redquartz to relief against a re-possession order in circumstances where there was no other breach of covenant identified.
In his evidence to the court, Mr Kelly said there had been a problem collecting rents on the site in general and that had led to his company's difficulties with the landlords. Those difficulties had now been resolved to the satisfaction of both Redquartz and the Wickhams, he said.
In response to concerns expressed about the solvency of Redquartz by Declan McGrath, for BrownBag Films Ltd, which operates from the Smithfield property, Mr Kelly said he was satisfied Redquartz would be able to pay the legal costs incurred by BrownBag as a result of the action.
Damien Keaney, for Redquartz, objected to Mr McGrath raising issues about the solvency of Redquartz in circumstances where Brownbag had offered no evidence on that issue. There was no gainsaying what would happen in the future and he was concerned
Redquartz was being "singled out", counsel said.
Mr McGrath said his concern was to establish Redquartz would be able to pay his client's costs. Mr Kelly said the company would be able to meet the costs order and there was "a clear path going forward".
