Solicitor Mr John Caldwell has said he paid Mr Liam Lawlor £350,000 he didn't owe him, because he did not want to get involved in a "public brawl" with the politician.
He said he gave Mr Lawlor the money because of threats which he said the politician was making.
"I decided that rather than being involved in publicity with him I would settle the claim." But he told Mr Pat Russell, barrister, for Mr Lawlor, that he did not believe the TD had any entitlement to the money, which was paid over in 1997.
Mr Lawlor withdrew from the tribunal last December, saying "no productive purpose could be served by my continued presence". However, Mr Russell appeared yesterday on his behalf to cross-examine Mr Caldwell, who has accused the politician of blackmail. Mr Russell pointed out that his client had approached Mr Caldwell to act on his behalf in the acquisition of land at Coolamber in west Dublin. Mr Caldwell had put no money into the venture, yet he ended up with a share in the land and made a profit of over £1 million.
He accused the witness of giving "self-serving" evidence designed to explain conflicting positions at Mr Lawlor's expense.
Mr Caldwell said he did not accept this; he had given his recollection of what happened and while this might not have suited Mr Lawlor, it was the situation.
According to Mr Russell, his client had no "hand, act or part" in the formation of Navona, an offshore company set up to own the Coolamber land. He had never instructed Mr Caldwell to set up an offshore company.
Counsel said Mr Lawlor had organised £208,000 and costs to buy the land, yet according to Mr Caldwell he had no share in Navona and no security. Such a situation would be "absolute lunacy", he suggested.
Mr Caldwell said it was a matter of judgment and risk and the objectives people had.
Counsel asked what objectives could be served by having no control over your interests. Mr Caldwell could have sold the land for £50 and Mr Lawlor would not have been able to stop him.
It was "absolute nonsense" for Mr Caldwell to suggest his client would put himself into a position where he would have no economic benefit from the land. What was in it for Mr Lawlor? Mr Russell asked.
"Anonymity," the witness replied.
However, Mr Russell said there was a "clear paper trail" showing where the money to buy the land had come from, beef baron Mr Larry Goodman.
For anyone looking at the transaction, "anonymity was out the window". Counsel accused the witness of "abdicating responsibility" as a solicitor by signing something that was "patently wrong" when he added his signature to a 1987 bank letter indicating that Mr Goodman was 100 per cent owner of the asset.
Mr Caldwell replied that his evidence on this was clear; Mr Goodman was never intended to be the owner and this letter "didn't go to the question of security" on the bank's loan. He denied an assertion by counsel that he had signed the letter knowing it was "blatantly untrue".
