A property developer who has taken legal proceedings against a Dublin businessman and declared bankrupt, Mr Matt Kelly, claiming an unspecified interest in several properties, may proceed in his action in relation to just one of those properties, a High Court judge ruled yesterday.
Mr Matt Kelly, a former director of Kelly's Carpetdrome (in liquidation), had applied to Mr Justice Smyth to have struck out as vexatious and an abuse of the court process the proceedings taken against him by Mr Cathal Kelly, with an address near Dundalk, Co Louth.
Mr Cathal Kelly has also taken proceedings against a tax consultant, Mr John McGrattan.
During the hearing of Mr Matt Kelly's motion, Mr Cathal Kelly told the court two shots were fired at him while he was driving his car, narrowly missing him, on the night prior to the hearing of the motion, and an attempt was made to force his car off the road.
In his proceedings against Mr Matt Kelly, Mr Cathal Kelly claims he holds a unspecified interest in a number of properties which Mr Matt Kelly claims to own. Mr Matt Kelly denies any such interest.
The court was told Mr Cathal Kelly's claim had adversely affected an agreement by Mr Matt Kelly with the Revenue to settle his tax affairs for some £3.6 million. It also heard the Official Assignee in Bankruptcy claims to hold the beneficial interest in the properties.
In his proceedings against Mr McGrattan, of Elm Mount, Stillorgan Grove, Blackrock, Co Dublin, Mr Cathal Kelly claims breach of fiduciary duty relating to a period of years when, it is alleged, Mr McGrattan managed Mr Cathal Kelly's finances. Mr Cathal Kelly claims he made significant profits during the years in question, trusted Mr McGrattan and is now destitute. Mr McGrattan has denied the claims.
Yesterday, Mr Justice Smyth ruled Mr Cathal Kelly may have a claim only in relation to property at North King Street. However, he also directed that any monies related to properties at Talbot Street be held pending resolution of all the claims.
The judge noted proceedings against Mr Matt Kelly by the liquidator of Kelly's Careptdrome had been compromised on terms which included the payment of monies by Mr Matt Kelly and his getting waivers from Mr Cathal Kelly in relation to certain properties held in the name of Armada Developments Ltd. The matter had been adjourned by the Supreme Court to facilitate implementation of the compromise.
The judge said he was satisfied Mr Cathal Kelly and Mr McGrattan were involved in business dealings for some years. Mr Cathal Kelly had said he could not establish the whereabouts of substantial sums he had invested through Mr McGrattan, some of which, Mr Cathal Kelly said, were in properties. This was disputed.
The judge also said he was satisfied that Mr Cathal Kelly did not pay any money to Mr Matt Kelly to give effect to a resolution for the purchase of £250,000 of shares.
He ruled Mr Cathal Kelly held no interest in the Talbot Street properties.
He was satisfied Mr Cathal Kelly had learned that Mr Matt Kelly required waivers from him because he (Mr Cathal Kelly) might have had an interest in Armada Developments. He was also satisfied a person as yet unknown had forged Mr Cathal Kelly's signature to the waiver.
The judge ruled Mr Cathal Kelly may have some form of claim for services rendered and monies expended on the North King Street premises, although this claim might lie more properly in the proceedings against Mr McGrattan.