Beef baron Mr Larry Goodman has denied claims he was involved in a conspiracy with Jordanian businessman, Mr Zakaria El Taher, to secure the removal of the Master Meat Packers group (MMPG) of companies from the meat trade.
Details were given to the High Court yesterday of Mr Goodman's defence to a £30 million (€38 million) claim for damages brought against him by the founder and former chief executive of MMPG, Mr Pascal Phelan.
Yesterday was the fifth day of the hearing before Mr Justice Roderick Murphy of claims and counterclaims brought on behalf of Mr Phelan, Mr Goodman and Mr Taher. The hearing of the actions is expected to last several months.
Mr Phelan claims he and Mr Taher were equal shareholders in 10 companies in MMPG but that Mr Taher "sold out" to Mr Goodman without Mr Phelan's knowledge. Mr Phelan alleges Mr Goodman conspired to force him out of the beef processing industry by secretly controlling Mr Taher's 50 per cent stake in the group.
The court was told that, for the purpose of the proceedings, Mr Goodman accepted he owned and controlled MMPG since 1987 but both Mr Goodman and Mr Taher deny the allegations of wrongdoing.
Mr Taher, in his defence, alleges that Mr Goodman acted fraudulently to defraud and damage Mr Phelan with a view to eliminating Mr Phelan and MMPG as competition to Goodman International or with a view to establishing a monopoly in the Irish beef industry.
An earlier court hearing was told that Mr Taher's shares in MMPG were held by a Liechtenstein entity which were sold to another Liechtenstein entity, Taras Ansalt, which it is claimed was beneficially owned by Mr Goodman.
Yesterday, Mr James Salafia SC, for Mr Phelan, continued his opening of the proceedings with a reading of the defences lodged on behalf of Mr Goodman and Mr Taher to the claims being made by Mr Phelan.
Counsel said that Mr Goodman denied seeking to eliminate Mr Phelan from MMPG or that he sought to establish a monopoly in the beef industry in Ireland. He also denied he fraudulently concealed any conspiracy or fraudulent acts from Mr Phelan.
Mr Goodman admitted that, in April 1987, he procured the sale of 80 per cent of shares held in a Liechtenstein entity for $9.750 million and had a share option over the remaining 20 per cent for a $100 consideration. It was denied this transaction was unlawful or in breach of a joint-venture agreement between Mr Phelan and Mr Taher (which, it is alleged by Mr Phelan, forbade the disposal of the 50 per cent share-holding each man held other than to the co-partner).
Mr Dermot Gleeson SC, for Mr Goodman, said it was not admitted the inducement was a breach of contract. His client would claim they induced something which was lawful - similar to asking someone to buy something in a shop.
Mr Salafia said Mr Goodman also denied that "deadlock" in MMPG was brought about by him or by Mr Taher. Mr Goodman denied Mr Taher had shares to sell in MMPG. The share-holdings, Mr Goodman claimed, were held by Mr Phelan and a Liechtenstein entity, and Mr Goodman had acquired those shares by buying the Liectenstein entity.
Mr Salafia said there was an admission on behalf of Mr Goodman that the sale was not disclosed at the time but it was denied that Mr Phelan was unaware that the sale of the shares had taken place.
Also yesterday, Mr Salafia read a press release issued on behalf of Mr Goodman in December 1989 in which it was stated that Master Meats had been taken over by a group of investors and that neither Mr Goodman nor any company with which he was associated has or had any beneficial ownership in Master Meats. Mr Salafia said Mr Goodman stated this knowing it to be untrue or being reckless and careless as to whether it was true.
