McNamara's company settles with IAWS over site

A COMPANY of developer Bernard McNamara and businessman James Morrissey have expressed regret at the Commercial Court about any distress caused to the Irish Agricultural Wholesale Society and Ronan McNamee by the bringing of legal proceedings against them which were settled yesterday.

The settlement of the action by Varleigh Ltd and Mr Morrissey, a co-director of Varleigh, against IAWS, now Aryzta, and Mr McNamee, founder of Cuisine de France, relating to a proposed major development in Tallaght, was announced yesterday afternoon to Mr Justice Peter Kelly.

Jim O’Callaghan SC, for Varleigh and Mr Morrissey, said the case had been settled and the only order being sought was to dismiss the plaintiffs claims with an order for costs in favour of the defendants.

Counsel said his clients also wished to express regret for any distress caused to the defendants by the proceedings.

John Gordon SC, for the defendants, consented to those orders being made. Mr Justice Kelly made the orders sought and also noted the comments of counsel for the plaintiffs.

The judge vacated the July 8th date for the hearing of an application by the defendants for orders requiring the plaintiffs to provide security for the legal costs of the case, the defendants having expressed concern about the financial status of Varleigh.

The defendants had also brought a motion for an order striking out Mr Morrissey’s claim as exhibiting no cause of action but that also will not proceed in light of the settlement.

Varleigh and Mr Morrissey had brought their claim seeking some €48 million damages over alleged “broken commitments” by the defendants concerning an alleged agreement for the development of lands at Tallaght.

The plaintiffs alleged they were wrongfully induced by IAWS and Mr McNamee into entering a contract to purchase the Uniphar Pharma site at Tallaght for some €52 million and sought damages over alleged misrepresentation concerning an alleged agreement for development of the lands.

On the basis of the alleged misrepresentations, Mr Morrissey had claimed he guaranteed Varleigh’s liabilities. It was claimed the site is now valued at some €33.6 million but would be worth substantially more – up to €117 million – had the defendants honoured an alleged agreement relating to joint planning submissions to South Dublin County Council. IAWS and Mr McNamee had denied the claims.