Judgment orders of €27.7m sought against businessmen

WELL-KNOWN businessman Brendan Murtagh is among three businessmen against whom summary judgment orders for some €27.7 million are being sought by a Luxembourg company over their alleged failure to honour agreements related to property investment in Poland.

The proceedings by Loparco against Greg Coughlan, Ardbrack, Kinsale, Co Cork, Brian Madden, Well Road, Douglas, Cork, and Mr Murtagh, Dunheeda, Kingscourt, Co Cavan, were transferred to the Commercial Court yesterday by Mr Justice Peter Kelly.

Brian O’Moore SC, for the plaintiff company, said the claim related to sites in Poland. His client was seeking orders requiring the defendants to honour their obligations under agreements.

Declan McGrath, for the defendants, said the defence would relate to other agreements between the sides, including a side agreement not before the court which, he said, had been breached.

There would also be a defence relating to whether the plaintiff had contributed to the situation which now obtained.

Loparco said it was the vehicle through which several Irish investors invested in four Polish companies by way of subscription of bonds and acquisition of shareholdings in those companies.

Loparco claims it had entered into agreements with Mr Coughlan in April 2007 relating to each of the four companies.

It also claims, at the same time, that all three defendants entered into separate guarantee and indemnity agreements whereby they agreed, jointly and severally, to guarantee the performance by Mr Coughlan of his obligations under the agreements on the Polish companies.