Two Government ministries are being sued for alleged breach of a €4.4 million contract for the refurbishment of a building in a west Dublin industrial estate for use as an accommodation centre for International Protection applicants.
Knockmitten House Services ULC and Mashup Property Ltd have brought Commercial Court proceedings against the Minister for Children, Equality, Disability, Integration and Youth and against the Minister for Justice, Home Affairs and Migration.
The companies claim the defendants have repudiated a contract to refurbish Knockmitten House in the Western Industrial Estate as accommodation for 66 International Protection applicants. They say a rate of €87.50 a day for each resident was eventually agreed and the contract was for a minimum of two years.
In an affidavit seeking entry of the case to the fast track commercial list, Knockmitten House Services director Gina Galligan said that, relying on the agreement with the Minister for Children, all required refurbishment works were carried out, staffing was provided and an inspection date with the department was scheduled for May 1st.
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On that same day International Protection accommodation matters were transferred to the Minister for Justice, and the inspection was cancelled and rescheduled for May 15th. However, that inspection was also cancelled and in July the Minister for Justice advised that the accommodation agreement would not be executed, Ms Galligan said.
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In a letter to Knockmitten in early September, the Justice Department said the decision to discontinue the accommodation plan was based around “value for money it offers, size and location of these premises and the current level of need in the sector”.
Ms Galligan said the decision means an estimated loss of profit of €4.4 million over three years for Knockmitten and Mashup. In the alternative, they seek compensation for wasted expenditure of nearly €3 million.
On Monday, Mr Justice Mark Sanfey admitted the case to the Commercial Court with no objection from the defendants, who said they may bring a security for costs application against the two companies.
The judge adjourned the matter to next month when he expects to be given an indication in relation to the security for costs matter.
