Building firm sues directors over reckless behaviour

A BUILDING company has sued three company directors and architects personally for some €3.8 million over allegedly recklessly allowing it continue building a €13.5 million development of luxury holiday apartments when money for the development had run out.

Manley Construction, Duleek, Co Meath, claims Bank of Ireland withdrew funding for the development in late November 2006, but the respondents allowed Manley and another company, both unaware of the financial position, continue to build and incur liabilities up to January 4th, 2007, when Manley was told of the financial difficulties. The loss incurred by Manley was solely as a result of the trade carried on from November 15th, 2006, it is claimed.

It is also claimed the firm of architects in which the three were partners, Mc Donnell Dixon, Ely Place, Dublin 2, and/or the three themselves had received payments between August and November 2006 totalling some €301,625 while Manley, the main contractor had been paid just €343,312 to date.

Manley claims the three, who owned the land on which the development was being built and were directors of Woodford Quay Developments Ltd, the now wound up company which appointed Manley to carry out the development, issued architects certificates for works carried out up to December 15th, 2006, which remained unpaid.

The action is against Alan Butler, Dangan Avenue, Kimmage Road West, Dublin; Nigel Jones, Wellington House, Wellington Road, Dublin, and William Laburn, formerly with an address at Glenard Avenue, Bray, Co Wicklow, but said to be out of the jurisdiction. The court was told it is unclear if Mr Laburn remains a partner in McDonnell Dixon.

Mr Justice Peter Kelly admitted the case against Mr Butler and Mr Jones to the Commercial Court yetserday but was told service of the proceedings against Mr Laburn still had to be effected. Lyndon MacCann SC, for the company, said his side had obtained an address for Mr Laburn and the proceedings would be served.

Fergus Gallagher, solicitor for Mr Butler and Mr Jones, said he would be contending there was nothing reckless involved in the matters before the court.

In its action, Manley claims the three respondents were directors of Woodford and also partners in McDonell Dixon. Manley claims it was appointed by Woodford in early 2006 as the main contractor to carry out an upmarket mixed holiday development of apartments, townhouses and a marina in Ballycollin, Russell Cove, Connell Quay, for a contract sum of more than €13.6 million.

Manley claims Woodford instructed it in September 2006 to sub-contract C A Excavations (Irl) Ltd to carry out civil engineering and ground works for some €2.1 million, excluding VAT and other payments.

In March 2006, Woodford had secured facilities from Bank of Ireland to fund the development up to €8.2 million, it is claimed. Manley began work in early October 2006 and continued to January 2007 when it ceased.