Hot Pressmagazine editor Niall Stokes has agreed what has been described as a "substantial" settlement with Riverdanceduo Moya Doherty and John McColgan, music promoter Denis Desmond and former Microsoft executive Tony Burke, in his High Court action against them arising from the collapse of the Hot PressMusic Hall of Fame museum.
The agreement was announced to Mr Justice Frank Clarke yesterday.
The settlement came a week after Mr Stokes and his wife, Máirín Sheehy, began their action against five people over liability for some €1.5 million for the company which ran the Hall of Fame museum in Dublin.
On that basis, the judge struck out the actions against Mr McColgan, Ms Doherty, Mr Desmond and Mr Burke. The couple failed to reach an agreement with the fifth investor, Dublin publican and hotelier Cyril O'Brien, and the action against Mr O'Brien is proceeding.
Details of the settlements were not disclosed to the court. However, outside court afterwards, a spokesperson for Mr Stokes said he was "very happy" with the "substantial" sum involved.
The court had heard that Mr Desmond became involved in the venture on March 17th, 1999, while Mr McColgan and Ms Doherty agreed to participate in the venture in February 2000, soon after Mr O'Brien pulled out. The museum closed in October 2001.
In the action, Mr Stokes claimed Mr O'Brien, Mr Burke and Mr Desmond were liable for the bulk of the €1.5 million losses, while Mr McColgan and Ms Doherty were liable for more than €158,000.
All the defendants had denied any liability for losses incurred by Steeple Investments - the company run by Mr Stokes and Ms Sheehy - which obtained investment through a business expansion scheme (BES) in order to develop and operate the museum.
As Steeple owned other assets on behalf of Mr Stokes and his wife, they sought indemnities by the other investors to cover 66 per cent of any losses that might be incurred as a result of Steeple being used as a vehicle under the BES scheme.
Earlier yesterday, in cross-examination of Mr Stokes, Senan Allen SC, for Mr O'Brien, put it to Mr Stokes that Mr O'Brien signed an indemnity in November 1998 with the original shareholders of the company responsible for the day-to-day running of the museum, Artwave Investments.
These shareholders were Mr Stokes, Mr O'Brien and Mr Burke.
Mr Allen said that, on St Patrick's Day 1999, Mr Desmond invested £308,000 and became a fourth shareholder. A new indemnity agreement was given to Mr Desmond to sign.
Mr Allen put it to Mr Stokes that the revised agreement was not given to the other three shareholders and Mr Stokes agreed it was not. He said this was because of the "hurly-burly" in the run up to the launch of the venue in April 1999.
"Everybody was aware of the need to sign all documentation. It would be unfair to say it was entirely my responsibility to ensure it was signed," Mr Stokes said.
The case continues today.