DEVELOPERS TREASURY Holdings and Harry Crosbie have settled their legal action over Mr Crosbie’s liability for part of a €20 million debt of their Spencer Dock joint venture development company.
After the settlement was announced to the Commercial Court yesterday afternoon, a smiling Mr Crosbie described the dispute as “a lover’s tiff”. Asked was he happy with the outcome, he said “very” and shook hands with Richard Barrett of Treasury.
Mr Barrett told reporters: “I’m smiling, so I’m happy.” During the hearing, the court heard a solicitor for Mr Crosbie wrote on January 14th that, even if Mr Crosbie had an obligation to pay €6.5 million of the €20 million debt, “he is not presently in a financial position to do so”. Neither side would comment on the details of yesterday’s settlement but a spokeswoman for Treasury said its business relationship with Mr Crosbie would continue.
Settlement talks began on Tuesday afternoon after Mr Justice Peter Kelly, who began hearing the case two hours earlier, remarked “squaring up to each other in court” was a “curious way of ensuring future good relations”.
Yesterday morning, the judge was told talks continued until about 9pm on Tuesday and both sides wanted more time. At 3.10pm, the judge was told agreement had been reached and the only order required was to stay the proceedings with liberty to re-enter.
Brian O’Moore, for Treasury, said it was very unlikely the matter would trouble the court again. When opening the case, Mr O’Moore said it arose from “one undisputed fact – the inability of Mr Crosbie to meet debts due by him and acknowledged by him”.
Treasury had sought to compel Mr Crosbie pay his alleged €6.5 million share of a €20 million debt due to another company under agreements for the financing of Spencer Dock Development Company. The court was told the Spencer Dock joint venture involved Treasury and Mr Crosbie agreeing to contribute two-thirds and one-third respectively of additional costs. Treasury agreed some money – about €1.4 million – is due to Mr Crosbie under other Spencer Dock agreements, making his total alleged liability about €3.9 million, rising to €4.78 million by November 2010.
Mr Crosbie denied liability and counter-claimed for some €10 million from Treasury arising from various agreements related to development in the docklands.
