Firm loses Anglo HQ compensation action
A German company contracted to carry out “no expense spared” glazing works for the facade of the proposed flagship Dublin headquarters of Anglo Irish Bank has lost its action for compensation when the project did not proceed.
Mr Justice John Cooke ruled Metallbau Fruh GMBH had failed to make out claims it was entitled to compensation on grounds including negligence and breach of duty by the bank, which collapsed in 2008, was nationalised and renamed Irish Bank Resolution Corporation.
The headquarters is on part of a site on Dublin’s north quays. The Central Bank recently signed contracts with Nama and the receiver of developer Liam Carroll’s North Quay Investments to purchase the site for €7 million.
In its action, Metallbau said that it became involved with others in 2007 in the development of Anglo’s proposed new corporate headquarters at North Wall Quay and was invited to tender for design, supply and installation of a fully unitised deep-cavity, double-skin facade/glazing system.
It claimed it was contracted to carry out the glazing works for €15.87 million, plus VAT as appropriate, in respect of an eight-storey building with an agreed uplift of €2.57 million, plus VAT, if the building was altered to a 10-storey property.
It claimed the value of works by it on the project by mid October 2008 amounted to €8.14 million but it had only ever been paid €450,000.
In his judgment, Mr Justice Cooke found the company had failed to show the necessary relationship of proximity to enable the court find negligence or breach of duty of care. He also found statements made to the company at a meeting in Germany in 2009 by some of those involved in the project were not binding on the bank and could not be taken as the bank authorising others to sign off on certain matters.