A FIRM of solicitors has told the Commercial Court it is “fully resisting” claims for up to €47 million damages over alleged negligence in advising a father and his two sons on the proposed development of the La Touche Hotel site, Greystones, Co Wicklow.
Thomas Hayden and his sons Wayne and Paul say they have been “totally embarrassed” about the state of the premises and the failure of the development. AIB appointed a receiver over the hotel in May 2008. They claim they have been humiliated by the faith they placed in their solicitors and developer Christopher Bennett and/or Bennett Construction Ltd (BCL). The hotel remains closed.
They claim no development works ever began and, as a result, they lost their expected share of €17.6 million profits and the opportunity to sell the premises for between €22 and €30 million.
On the application of the solicitors’ firm of Eversheds, O’Donnell Sweeney, Earlsfort Terrace, Dublin, Mr Justice Peter Kelly admitted the proceedings by the Haydens against the firm to the Commercial Court list yesterday.
The proceedings were initiated last month by Thomas Hayden, Burnaby Park, and his sons Paul Hayden, The Woodlands, and Wayne Hayden, Manor Avenue, all Greystones.
It is claimed, through Vardar Ltd, the plaintiffs were beneficial owners of the La Touche Hotel which, it is alleged, had significant development potential. The Haydens claim they, through an estate agent, Tadhg Campion, arranged a meeting with a developer, Christopher Bennett, at the Conrad Hotel in Dublin in June 2003.
When they arrived, they claimed they were told Mr Bennett could not make the meeting and they had to meet Rory O’Donnell, a former partner of the defendant firm. The Haydens claim they were told Mr Bennett would not do business with them unless they retained the defendant firm. They claim they agreed to do so. They also claim they were later asked to sign a written contract relating to Mr Campion’s services and it appeared the defendants were involved with or had advised Mr Campion on that contract.
The Haydens claim they were advised by the defendant firm at all material times on matters relating to the proposed development. Relying on that advice, they claim they entered into a contract in October 2003 with Mr Bennett and BCL for the sale of the land and also entered a development agreement.
It is claimed, on advice of the defendant firm, Thomas Hayden sold half his interest in a premises at Marine Terrace, Greystones, and purchased other premises. The Haydens also claim they were never advised about possible complications or consequences of certain ownership structures.
They claim planning permission was obtained in June 2005 for 85 apartments, a hotel and other premises on the La Touche site. They claim Mr Campion valued the site at some €30 million in 2003 and a property consultants firm, acting on their behalf, valued it for €28.5 million in 2005. The Haydens claim the same site was valued at €16 million by Hooke and McDonald on behalf of Mr Bennett or BCL or another firm but that valuation was not done in accordance with procedures agreed for fixing the site price.
The defendants later failed to advise them of the risks of replacing their 2003 contract with Mr Bennett and BCL with a contract with Palestake Ltd, a limited liability company with no assets whose directors included Christopher Bennett, it is claimed. The Haydens allege they transferred a 50 per cent share of the premises to Palestake at a discounted price of €10 million but were afterwards unable to compel the development be carried out.
