Court order on €1.5m land deal

A BUSINESSMAN described by his lawyer as prominent in GAA circles in Co Mayo has secured a High Court order restraining another businessman from claiming any interest in development lands on the edge of Roscommon town which were bought for € 1.5 million.

George Golden, a former selector of the Co Mayo GAA football team who lives in Westport, Co Mayo, had brought his proceedings against Desmond Maughan, of Crossmolina, Co Mayo, over a deal for the purchase of 11.4 acres in Co Roscommon.

Mr Golden had also brought the case against another businessman, Declan Flynn, with whom Mr Golden was involved in purchasing the lands. However, after Mr Golden conceded at the outset of the case that no complaint was made against Mr Flynn in the action, the case against Mr Flynn was struck out. Separate proceedings between Mr Flynn and Mr Maughan are outstanding.

The court heard Mr Flynn and Mr Maughan had been good friends who knew each other for some 20 years and had over a number of years prior to 2004 concluded a number of land deals through their “Flynn-Maughan partnership”. Mr Golden said he knew both men since about 1997, and they would meet at race meetings or football matches.

Mr Golden said Mr Flynn had invited him in 2004 to join with Mr Flynn in purchasing 11.4 acres of land on the edge of Roscommon town, which had development potential. Mr Flynn had bid for the lands, his bid of €1.55 million was accepted and a deposit was subsequently paid out of the Flynn-Maughan partnership account.

In evidence to the court, both Mr Flynn and Mr Golden said Mr Maughan had been asked whether he wanted to get in on the deal, but had declined the offer on two separate occasions. Both men also said Mr Maughan would have been welcome to get involved.

Mr Maughan denied those claims and insisted he was party to the deal. In May 2006, he had registered a caution over the lands, an action which may have a negative impact on any proposed sale.

In his reserved judgment yesterday, having analysed the evidence in the case, Mr Justice Brian McGovern said he was satisfied the Flynn-Maughan partnership had entered into numerous property transactions over the years and that Mr Flynn was the dominant person in negotiating those deals and putting them into effect.

The judge said that in this case he was solely concerned with whether Mr Maughan was involved in the Roscommon deal.

He had found Mr Golden to be an honest and credible witness who had “no axe to grind” and accepted his evidence that Mr Maughan had twice said he was not involved in the Roscommon deal. That evidence was also supported by Mr Flynn.

Bank documents also provided support to the fact that Desmond Maughan was not involved, the judge added.