A legal dispute between developer and businessman Greg Kavanagh and his brother Hugh Kavanagh has returned to the High Court following an alleged breakdown of a settlement agreement they entered in to three years ago.
The case first came before the court in 2020 over alleged attempts to remove Hugh as a director of 19 companies without notice and remove him from his executive role in the property and construction business the brothers had operated for many years.
Hugh and Simlur Ltd, a company of which Hugh is owner and sole director, launched proceedings against Greg and various companies, including Structured Marshalled Investments Ltd (SMIL), which is the group’s holding company as well as New Generation Homes Ltd and Isotonic Hotel Ltd.
All claims of wrongdoing were denied.
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In 2020 Mr Justice Senan Allen was told the case had been settled and resolved in its entirety to the mutual satisfaction of both sides.
On Thursday, Paul McGarry SC, for Bernard otherwise known as Hugh, told Mr Justice Mark Sanfey his client was seeking to have the action re-entered before the court over what counsel said was “asset stripping” and payments out from some of the companies.
It is claimed that Greg has never complied with the terms of the 2020 agreement.
In his application, Hugh is seeking an order declaring that his brother and the group of companies are in breach of and have failed to comply with the 2020 settlement agreement.
He also seeks an order declaring that, arising out of the alleged breach, his brother and the defendant companies are in contempt of court and should be committed to prison.
Mr Justice Sanfey granted the applicant, on an ex parte basis, permission to serve short notice of his motion on Greg and the defendant firms within the group.
The matter will return to court next week.
[ Developer brothers settle High Court row over property empireOpens in new window ]
When the matter was previously before the High Court in 2020, the court heard that after working together for some 17 years, relations between the brothers deteriorated.
Greg, it was claimed, was seen as the front-of-house of the business, while Hugh had a hands-on role in terms of actual building work and development activities. Hugh claimed he had been removed as a director of 19 of the 20 defendant companies but had not been removed as a director of one defendant firm, Bezzu Corporation Ltd.
He had claimed he operated a property and construction business with Greg, his younger brother, and they had built up a very successful business.
Hugh claims this was formalised in 2018 when 50 per cent of the shares in SMIL, the main holding company for the business, were transferred to his holding company, Simlur. However, he claimed in 2020 his relationship with Greg had deteriorated, and his brother allegedly purported to remove him as director of 19 of the companies.
The claims were denied, and following out-of-court talks between the parties, the High Court was informed the matter had been settled.
