Charity-linked group granted €4.5m judgment over breaches of lease deals

A COMPANY whose profits are distributed to charities here and abroad has been granted summary judgment for some €4.5 million against two other companies over alleged persistent breaches of lease agreements for aircraft, including helicopters involved in search and rescue operations.

Mr Justice Peter Kelly granted summary judgment yesterday for €4.5 million and ruled if that sum was not paid to lawyers for the plaintiff by 3pm next Wednesday the plaintiff was entitled to a further judgment of some €8 million, plus delivery to it of three helicopters and equipment including medical kits. He directed rental payments must continue to be paid as provided for under the leases.

If the €4.5 million sum is paid by Wednesday, the case over entitlement to the additional €8 million and to possession of the helicopters and medical kits will proceed to a full hearing later this year, the judge ordered.

The defendants were granted leave to defend on grounds including the exact nature of what was agreed at a meeting with Italian lawyers last month and the level of professional fees being claimed.

The proceedings were initiated in the Commercial Court last month by Abbey International Finance Ltd, Merrion Square, Dublin – beneficially owned by the World Charitable Foundation of Ireland.

Since 1993, Abbey has paid more than €21 million to its beneficial owner, all of which was distributed to charities in Ireland and abroad, the court heard.

The action is against Point Ireland Helicopters SA, with registered offices at Earlsfort Terrace, Dublin, and Elitaliana SpA, registered in Rome. Both companies are within the same group of companies whose parent is the Italian company Point Holdings SpA.

The case arose from aircraft lease agreements involving helicopters and air medical kits. Abbey claimed Point Holdings guaranteed the obligations of the two defendant companies under the leases and alleged serious default on payment obligations under the leases since late 2008.

In opposing summary judgment, the defendants disputed the validity of termination notices served on grounds including alleged discussions between the sides last month that resulted in a €300,000 payment to the plaintiffs. They also argued Italian law governed those discussions.

In his ruling, Mr Justice Kelly noted there had been default on rental payments under those leases almost from the beginning and the defendants admitted some €3.2 million rent was owed, but disputed the additional claims.