A DEVELOPMENT company has secured €1.39 million summary judgment orders against another company arising from their joint enterprise in a retirement home development near Killarney in Co Kerry.
The order was made in proceedings by Jeremiah Galvin, Colm Galvin and Denish Galvin and Galvin Developments (Killarney) Ltd against Souter Enterprises Ltd.
Mr Justice Peter Charleton, however, declined to give summary judgment for an additional €1 million in a related application arising from a “co-ownership” agreement of January 2007.
The judge ruled the defendant had made out a defence to that particular claim, requiring it to be dealt with in a full plenary hearing.
The proceedings arose from a development of lands at Coolegrean, Killarney. The judge said a building project was agreed between Souter and Galvin Developments under which the lands would be developed in two phases.
The first phase consisted of a nursing home and 81 small dwellings to be used as retirement homes by the elderly. This development was built and took up about four acres of land. The second phase has not been built and was to have consisted of a residential housing scheme.
The nursing home was completed within time and sold on December 31st, 2008 to a group of investors but the judge said he understood very little market interest was shown in the small retirement units. He said financial difficulties between the parties arose by virtue of lack of interest in the retirement village units.
The defence had argued that when the economic collapse of 2007/08 became apparent, the plaintiff continued with the works recklessly, thereby increasing liability between the paries in their joint enterprise.
The judge ruled there was no evidence before the court imposing some obligation to proceed cautiously. The building contract established the project to build was an obligation unencumbered by any reference to market forces, he said.
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