THE auctioneering firm of R B. Gunne (Monaghan) plc has been ordered by the High Court to pay £50,000 damages to a Northern Ireland couple following their disastrous venture into the pub business.
Mr Francis McCullagh and his wife Mrs Moira McCullagh, both in their 50s, in 1981 sold their 20 acre farm at Coagh, Cookstown, Co Tyrone, to buy a small pub or hotel in the State.
Miss Justice Carroll, in a reserved judgment, said the McCullaghs contacted the then manager at Gunne's Monaghan office. They told him they had never bought property before and asked him to "keep them straight".
In 1982, Gunne's manager bought the Pollard Arms at Castlepollard, Co Westmeath, for the McCullaghs for £125,000. The business venture was a disaster. When the premises did not sell, the McCullaghs went back to Northern Ireland.
Miss Justice Carroll said the McCullaghs were very decent, honourable people who were commercially naive. The picture built up by the evidence showed that the manager did a lot more than would be expected from an auctioneer acting for a vendor than trying to get the best price. He did not explain to the McCullaghs that he could not act for them or "keep them straight" on things.
The principal issue in the case was whether there was a voluntary assumption of responsibility by the firm's manager to get the McCullaghs adequate finance and "to keep them straight".
In the circumstances of this case it appeared the manager did take over the burden of assisting the McCullaghs to arrange adequate finance.
He sold the farm for them; opened an account for them; did not demur when they said they wanted him to "keep them straight"; did not demur when they asked him to buy the Pollard Arms at the best price. He arranged a meeting with a representative of ICC and found solicitors for the McCullaghs.
Miss Justice Carroll said the McCullaghs did not deserve the treatment they got from the Gunne's manager.
She awarded them damages of £50,000 increased by reference to the Consumer Price Index taking April 7th, 1982, as the base date.