Indemnity action against developer's estate settled

A FORMER business partner of deceased developer Liam Maye – whose company built the Dundrum shopping centre – has settled his action against the Maye estate aimed at securing an indemnity related to loans of some €400 million.

The proceedings by Bernard Costello against Maye’s widow Anne, in her capacity as personal representative of her husband’s estate, were due to open before Mr Justice Peter Kelly at the Commercial Court yesterday, but were settled after out-of-court talks between the sides. No details of the settlement were disclosed.

In separate proceedings yet to be heard by the High Court, Allied Irish Banks has sued Ms Maye (in her capacity as executrix), Mayeco Properties Ltd and others for €58 million arising from various loans and guarantees. The loans were being reviewed by the National Asset Management Agency for possible takeover, the court had previously heard.

The judge yesterday welcomed the settlement, announced to the court by Paul Sreenan for Mr Costello, and Paul Gardiner for Ms Maye.

On the application of the sides, he adjourned the case generally, with liberty to re-enter if necessary to enforce the settlement.

Earlier, Mr Sreenan had said there were issues involved which went beyond the issues in the court proceedings.

Mr Justice Kelly had last month rejected an application by Ms Maye to have a pre-trial hearing concerning the admissibility of certain “highly sensitive” financial information contained in documents submitted by Mr Costello.

Edward Farrelly, for Mr Costello, said documents in dispute included material from Anglo Irish Bank and Irish Nationwide Building Society showing sufficient capital was available to pay certain debts which remained unpaid.

In his proceedings, Mr Costello, Greenfield Road, Mount Merrion, Dublin, had sought orders requiring Ms Maye, as personal representative of the estate of her husband, who died in May 2008, to honour an alleged agreement to give him an indemnity relating to loans of some €400 million.

Ms Maye, Weavers Hall, Plunkett Avenue, Westminster Road, Dublin 18, had argued in an affidavit the case was premature, given efforts by the sides to address issues.