Two related building companies of which businessman Mr Jim Kennedy and his wife Antoinette are directors, Lismore Homes Ltd and Lismore Builders Ltd (both in receivership), have opposed an application by Bank of Ireland Finance Limited to the Master of the High Court for the production of documents.
Mr Kennedy formerly operated an amusement arcade in Dublin city centre but now has an address in the Isle of Man. He is due to appear before the Flood tribunal today. His wife is due to appear tomorrow.
The two Lismore companies are suing the bank and a number of companies as well as the receiver over the Lismore companies, Mr Bernard Somers, for damages.
Master Edmund Honohan yesterday reserved judgment on the discovery application. He said that, from a reading of papers, it appeared the two construction companies had bought lands in 1979 at Weston, Cooldrinagh, Newcastle, Co Dublin, with monies advanced by the bank. They bought more lands in the 1980s pursuant to an agreement with a company named Financial Indemnity Company (Ireland) Ltd (FICIL).
Master Honohan asked counsel for the Lismore companies for an explanation for FICIL and was told it was set up by a Mr Caldwell.
Lismore was nominated to be the purchasers pursuant to an option to buy two adjacent parcels of land which they got in the late 1980s. They got permission for the construction of 442 houses to be known as Weston Park.
The Lismore companies got into difficulties with repayments to the bank, which called in the debt in early 1989. Following negotiations, the bank agreed to further funding which, it is claimed, was not sufficient. The bank appointed a receiver in April 1989.
The Lismore companies are suing the bank, claiming that, had it honoured an alleged agreement, they would have been able to complete their plans for the land.
The bank applied to the Master for documents to be produced by the Lismore companies. Mrs Kennedy, of Deerpark Drive, Castleknock, Co Dublin, said in an affidavit that she was a director of both companies.
She said the bank's application should not be granted and that they were seeking to have proceedings before the courts consolidated into one action.
Among the documents sought by the bank are any records maintained on behalf of Lismore Homes concerning meetings with the company's representatives.
The bank is also seeking documents concerning any funds paid or liabilities incurred by Lismore Homes in connection with a court case entitled Travers Construction Ltd v Lismore Homes Ltd.