Billionaire John Magnier’s action over Barne Estate deal to be contested

An action by billionaire John Magnier and his family over the sale of a 751-acre residential tillage farm in Co Tipperary has been admitted to the High Court’s fast-track division.

Mr Magnier, his son John Paul and daughter Kate Wachman claim the current owners of Barne Estate in Clonmel intend to repudiate an agreement to sell the property to Mr Magnier.

The Magniers say the deal for Mr Magnier to buy for €15 million was hammered out at a meeting in Coolmore Stud on August 22nd last.

Present at the meeting were Mr Magnier and his wife Susan, Coolmore farm manager Joe Holohan and one of the current owners, Richard Thomson-Moore, and his wife, Anna Thomson-Moore, as well as the auctioneer involved in putting the estate up for sale.

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Barne Estate, Richard Thomson-Moore and two other companies, IQEQ One (Jersey) Ltd and IQEQ Two (Jersey) Ltd, which own the shares in Barne, are defendants in the case.

On Monday, Mr Justice Denis McDonald, on the application from Paul Gallagher SC, for the Magniers, admitted the action to the Commercial Court on consent with the defendants.

Martin Hayden SC, for the defendants, said his side will be lodging its defence and bringing an application to strike out the case on grounds there is no cause of action.

The judge approved agreed directions for progressing the case and adjourned it to next month.

In their statement of claim, the Magniers say it was agreed at the August meeting that the purchase could be executed, at the election of John Magnier, by way of direct purchase or through a sale of the entire shareholding in Barne Estate Ltd.

They say John Magnier, Richard Thomson Moore and the auctioneer shook hands on the deal, which they say then became binding.

They say the terms of the agreement were recorded in a sales advice note from the auctioneer.

They also claim the existence of the sale agreement was acknowledged by the fact that Mr Magnier was granted a tillage licence to plough and sow some 650 acres of the estate.

There was also a deposit of €250,000 paid to the auctioneer and Mr Magnier, at the encouragement of the auctioneer, transferred the entire €15 million purchase price to his solicitor’s client account.

There was also an offer of employment made to the Barnes farm manager, which had been part of the deal. Mr Magnier also put Mr Thomson-Moore in contact with KPMG following a request for assistance with the tax implications of the sale.

Last month, the Magniers say, Barne Estate Ltd indicated in correspondence from its solicitors that there was no binding agreement over the property.

The Magniers seek a number of reliefs from the court including a declaration that Barne Estate and the Jersey shareholding companies are parties to a contract for the direct sale of the land or by way of a share purchase agreement.

In the alternative, they seek an order for specific performance of the shareholding purchase agreement or the direct purchase agreement.

If necessary, they also seek an injunction restraining the shareholding companies from disposing of the land.