A LEGAL action has been settled against former Fianna Fáil councillor Gerard Killally and former Co Offaly GAA football manager Richie Connor arising from claims by former business partners both men made “secret profits” of several million from four land deals.
Following day-long discussions yesterday, Mr Justice Brian McGovern was told the action against both men was settled and no order was required except liberty to re-enter the matter, if necessary.
An apology was read out on Mr Connor’s behalf in which he said he was sorry for his role in the transactions which gave rise to the proceedings.
“I got caught up in the mania of the property boom and allowed the temptation of easy gain to impair my judgment,” Mr Connor said. He wanted to apologise to his former partners, friends and family for “any distress” caused by his actions.
Mr Killally was a former Offaly County Council chairman and Mr Connor was a partner with him in the firm ERA Gerard Killally Auctioneers, incorporating Killally Connor and the Mortgage Warehouse.
Both men had previously admitted in the Commercial Court to making secret profits from two of four land deals they were involved in but denied making secret profits in relation to two more deals.
This hearing was to assess damages due to former partners arising from the admissions made and the judge also had to decide whether secret profits were made from all four transactions.
The action was brought by Declan Guing, Carrick Road, and Frank Lawlor, Clonmullen Lodge, both Edenderry, who sought damages in relation to all four deals, alleging misrepresentation, breach of contract and unjust enrichment.
A third man, Adrian Daly, Racefield House, Cappincur, Co Offaly, claimed he was involved as a partner in the two later deals.
It was claimed Mr Killally and Mr Connor introduced the respective partnerships to the deals, acted as negotiators and agents for the partnerships and made secret profits which were not disclosed.
It was alleged the first two pieces of land were bought for sums less than was represented to the partners. It was also alleged, when buying the second two pieces of land, sections were “hived off” and the beneficial interest in those sections was transferred to companies connected to Mr Killally and Mr Connor.
Outlining the case on Tuesday, counsel for the partners said the first piece of land to be bought by the Killally/Connor/ Lawlor/Guing partnership in 2005 was 9.5 acres, known as the Daingean Road lands at Cappincur, Tullamore. The partnership paid €6.5 million for these lands but the actual price paid was €5 million, counsel said.
The second deal was for 16 acres in the centre of Edenderry which had planning permission for a major development. This property, the Downshire-Edenderry lands, was sold in a series of transactions secretly procured by the defendants by a company called BMPK Ltd in trust to a solicitor for €9.5 million, counsel said.
The land was then sold on for €11.5 million to the partnership in a manner which concealed the true nature of the transaction, it was alleged.
The third deal was for 16.4 acres in Edenderry, known as the Stateridge lands, to be bought for €2.25 million from a local farmer.
While those lands were unzoned, Mr Lawlor said he was told by Mr Killally they would be rezoned “in a matter of weeks”. When that deal went through, it was claimed 1.1 acres were disposed of to a third party without the knowledge of Mr Lawlor, Mr Guing and Mr Daly, who was then involved as a partner.
The fourth deal was over 30 acres in Edenderry known as the Dublin Road lands and was similarly transferred in a complicated arrangement involving a number of companies. That site was sold to the partnership for €10.1 million, but when maps were examined later, it was found only 27 of the 30 acres had been transferred.