Carway action dropped in settlement agreement

COUNTYGLEN has dropped its legal action against Mr John Carway as a condition of the settlement of its action against the Limerick solicitors, Connolly Sellors Geraghty Fitt, according to the company.

The solicitors, which at various times were legal advisers to both the company and Mr Carway, insisted CountyGlen drop its action against Mr Carway as part of the terms of the settlement, according to the company.

CountyGlen issued a statement to this effect yesterday following comments by Mr Paddy Geraghty, one of the partners in the solicitors. Mr Geraghty said CountyGlen dropped the action against Mr Carway "for its own reasons". Mr Geraghty said his firm considered this unsatisfactory. Mr Geraghty could not be contacted yesterday.

CountyGlen took an action for damages against Mr Carway and his family, alleging they were behind a fraud that cost the company more than £1 million in 1993. The case came before the courts in February but was adjourned shortly afterwards.

The company also took actions against Connolly Sellors Geraghty Fitt which was its former solicitors, and against Anglo Irish Bank, which was involved in some of the transactions at the centre of the controversy.

The actions were settled out of court on Wednesday when Connolly Sellors Geraghty Fitt and Anglo Irish Bank agreed to pay £1.2 million in settlement. Mr Carway did not contribute to the £1.2 million sum, but paid his own legal costs.

Under the terms of the settlement, Mr Carway and his family agreed to drop any legal action against Connolly Sellors Geraghty Fitt and Anglo Irish Bank.

The Limerick solicitors provided testimony to the CountyGlen inspector, Mr Frank Clarke, who concluded in a report to the High Court that Mr Carway was behind the fraud at the company. Mr Clarke's report was the basis of CountyGlen's case against Mr Carway.

Mr Clarke concluded Mr Carway was the beneficiary of a number of deals which cost CountyGlen over £1 million. He also concluded Mr Carway was the owner of the controlling share holding in the company at the time the deals took place.