Proceedings taken by a Derry-based construction company against former Taoiseach Mr Albert Reynolds, a Co Meath businessman and a Channel Islands company were adjourned at the High Court yesterday.
The proceedings have been taken by O'Neill Brothers (Building Contractors) Ltd of Pennyburn Industrial Estate, Derry, against Mr Reynolds, businessman Mr Patrick Russell, of Old Forge, Hill of Down, Enfield, and Universal Management consultants Ltd, St Helier, Jersey. The Derry company is claiming £560,000 sterling.
A previous hearing was told that O'Neill Brothers was claiming it had extensive dealings with Mr Reynolds and Mr Russell from 1997 regarding possible construction projects in Derry and Swords, Co Dublin.
At that hearing, in June last year, Mr Justice Kelly had granted an injunction restraining Mr Russell from reducing his assets below £875,000 pending the trial of the action. He gave Mr Russell permission to apply to the court at 72 hours' notice to the building company.
Last year's hearing was told by Mr Martin Hayden, counsel for Mr Reynolds, that his client entirely rejected the allegations made by the building company.
In an affidavit, Mr Desmond O'Neill, a director of the Derry company, said it had paid out a total of £650,000 sterling to the defendants and on top of this had incurred losses of around £70,000. It had repeatedly demanded repayment of the money but had not received anything at that time.
Mr O'Neill said that in November 1997, Mr Noel Gallagher of Brandywell Road, Derry, approached the directors of O'Neill Brothers and indicated he had an influential and wealthy acquaintance whose expertise might enable the company to expand its business through joint venture projects.
They met Mr Reynolds, of Ailesbury Road, Dublin, and a project was selected for a housing and hotel development at the former Good Shepherd Convent in Derry's Waterside.
Mr O'Neill said that Mr Reynolds introduced them to Mr Russell who, according to Mr Reynolds, was going to provide detailed knowledge and expertise in the management of the project. Heads of agreement were drawn up in December 1997. The Derry project encountered difficulties in July 1998 and, Mr O'Neill alleged, the defendants defaulted in producing funds. O'Neill Brothers tried to find alternative partners but failed.
O'Neill Brothers was also requested by Mr Reynolds and Mr Russell in December 1997 to become involved in a project in Swords to develop industrial lands. The project did not go ahead and the company sought the return of certain monies.
