Multimillionaire property developer Sean Dunne expressed concerns about exposure to a possible tax liability of 47 per cent during negotiations last year over the possible sale of his 50 per cent stake in the Whitewater shopping centre in Co Kildare, the High Court heard yesterday.
The developer, who recently bought Jury's Hotel and other sites in Ballsbridge, is seeking a declaration from the court that no binding agreement was reached between himself and businessman Kevin Warren for the sale of his stake.
Representatives of Mr Dunne made clear that exposure to a 47 per cent tax liability rather than a 20 per cent liability would "definitely be a deal breaker" and sought, in the event of such exposure, "a walkaway provision" for Mr Dunne, according to correspondence read to the court by Paul Gallagher SC.
However, Mr Warren, who is claiming specific performance of an alleged agreement for purchase of Mr Dunne's stake, took the view that Mr Dunne's tax issues were personal, did not come within the scope of the alleged agreement and were a matter for Mr Dunne, the court also heard. Mr Warren took the view that a development agreement regarding the centre could not be made conditional on Mr Dunne's tax position.
In his continuing opening of proceedings by Mr Dunne over the alleged sale of his stake in the Whitewater centre, located outside Newbridge, for €37.5 million, Mr Gallagher read a large number of documents related to negotiations in 2005 concerning the sale of Mr Dunne's stake.
Mr Dunne, of Merrion Square, Dublin, claims the purported sale of his 50 per cent stake in the shopping centre to Mr Warren, of Northumberland Road, Dublin is in breach of an agreement that the sale would not be completed until a development agreement had been executed by both parties. Mr Dunne claims it was understood by both parties that the €37.5 million figure was only part of an overall figure to be agreed under a development agreement to be negotiated.
Mr Warren has denied Mr Dunne's claims and says Mr Dunne agreed to sell his 50 per cent stake in the Whitewater Shopping Centre for €37.5 million and that a €100 deposit paid on August 31st, 2005 secured the deal. Mr Warren also claims there is a binding contract between Mr Dunne and Mr Warren for the sale of the former's stake, which alleged contract was agreed in a written memorandum of agreement made on July 21st, 2005.
He contends Mr Dunne has refused to complete the sale and is acting in breach of contract.
The hearing before Ms Justice Mary Finlay Geoghegan continues today.
