The Supreme Court has ruled a binding contract exists under which a building contractor was to be paid a maximum €15.3 million to construct a housing scheme in Co Wicklow.
The three-judge court yesterday overturned a High Court finding there was “no concluded contract” between McCabe Builders (Dublin) Ltd (MCB) and three companies in the Hanly Group of companies – Sagamu Developments Ltd, Laragan Developments Ltd and Hanly Group Ltd – relating to construction of the housing scheme at Rocky Valley, Kilmacanogue.
The result of the High Court decision was both sides were left with the uncertainty of an unquantified claim, the Supreme Court said. If there was no contract, there was no reason to limit McCabe’s to the €15.3 million sum set out in documents and the entitlement to payment was to be assessed on a quantum meruit basis (as much as was deserved).
Grand Canal action appears settled
Pierse Contracting has effectively settled a legal action aimed at securing €3.2 million allegedly due to it under an €81 million contract related to a development at Grand Canal Square in Dublin, the Commercial Court heard yesterday.
The proceedings by Pierse against Grand Canal Square Developments Ltd, with registered offices at Malahide Road, Balgriffin, Dublin, were admitted to the Commercial Court last month by Mr Justice Peter Kelly.
After hearing from counsel for both sides yesterday, the judge noted the case was “effectively settled” and agreed to adjourn it for mention only on April 20th when, he was told, it was unlikely to trouble the court further.
Pierse had claimed it entered into a contract with the defendant company in April 2006 to carry out works for a contract sum of about €62.2 million, excluding VAT. It claims the contract was later varied in July 2008 to alter the contract sum to a lump sum of €81 million, payment of which was to be made in accordance with the terms of the contract.
HSBC hub boost for local operation
The HSBC Group is expanding its Ireland reinsurance operation, making it the group’s new global hub. The existing HSBC Ireland Reinsurance team will be enhanced along with additional infrastructure put in place by July.
The Irish operation will now be at the heart of HSBC’s global reinsurance business, which is worth $16 billion annually. The changes will require 15 additional staff including senior appointments to assist the business, which was established in Ireland in 2000. “This decision is a major boost for HSBC Ireland and recognition of the hard work and success of our insurance business,” says Ireland chief executive Simon Wainwright.
Rise in pending home sales in US
Pending sales of existing US homes rose modestly in February but the market is still weak in the face of continued declines in home values and a recession, a realty trade group said this afternoon.
The National Association of Realtors (NAR) pending home sales index, based on contracts signed in February, was up 2.1 per cent to 82.1 from an index of 80.4 in January. Economists polled by Reuters ahead of the report were expecting pending home sales to rise by 1 per cent. – (Reuters)
