Family dispute over running hotels compnay is resolved

Sister had brought proceedings against brothers and accountant

A legal dispute between family members over the running of a company that owns hotels in Dublin and Galway has been resolved.

The action, before the Commercial Court, involved members of the Flannery family over the operation of Foxfield Inns DAC, which owns the Ashling Hotel in Dublin, the Imperial Hotel in Galway and several commercial and residential properties which are rented out.

When the action was launched in late 2020, the High Court heard that the company employed some180 people.

A subsidiary of the firm owns and runs the Eglington Hotel in Salthill, Galway.

On Tuesday Mr Justice Denis McDonald was told that the parties, following a mediation, had settled the dispute.

Mary Flannery, College Road, Galway, who is secretary of the company, had brought proceedings under section 212 of the 2014 Companies Act against members of her family and the company's accountant.

She claimed that the respondents had acted in an oppressive manner infringing her rights concerning the running of Foxfield Inns.

The proceedings were against her brothers Frank Flannery, Ladyswell Park, Glasson, Athlone, Co Westmeath and Kevin Flannery and his wife, Sheelagh Flannery, The Green, College Road, Galway who denied the allegations.

The action was also against James Norton, the company’s auditor, and accountant, who also rejected the claims against him and Foxfield Inns DAC, both of Carysfort Avenue, Blackrock, Dublin.

The court previously heard that Kevin, Frank, Mary and their sister Andrena Moynihan were shareholders and directors of Foxfield while Sheelagh Flannery is a director but not a shareholder.

Action

Mary Flannery did not initially bring proceedings against Ms Moynihan and no allegations were made against her. However, Ms Moynihan was subsequently joined, on her own application, as a respondent to the action.

At the Commercial Court, Lyndon MacCann SC for Mary Flannery told the court that mediation in the case had resulted in a settlement of the dispute.

While the overall terms of the settlement agreement are confidential, counsel said it had been agreed that the court can make orders requiring Foxfield Inn to purchase both Mary Flannery’s and Andrena Moynihan’s shareholdings in the company.

Counsel said that it had also been agreed that, if necessary, the action could be re-entered before the court in order to enforce the terms of the settlement. The judge, who welcomed the settlement, adjourned the matter for mention to date in April.