Sale of nursing home may see €1.9m judgement against Reilly discharged

Commercial Court case relating to Tipperary business adjourned until October

A bid to secure the sale of a nursing home in Co Tipperary at the centre of a legal row could ultimately result in a ¤1.9 million judgment order obtained last year against the Minister for Health James Reilly  being discharged. Photograph: Eric Luke/The Irish Times.

A bid to secure the sale of a nursing home in Co Tipperary at the centre of a legal row could ultimately result in a ¤1.9 million judgment order obtained last year against the Minister for Health James Reilly being discharged. Photograph: Eric Luke/The Irish Times.

 

MARY CAROLAN

A bid to secure the sale of a nursing home in Co Tipperary at the centre of a legal row could ultimately result in a €1.9 million judgment order obtained last year against the Minister for Health and several others being discharged.

A legal application aimed at securing the sale of the 54-bed Greenhills nursing home was mentioned briefly before Mr Justice John Cooke today before being adjourned to October.

In February 2012, judgment for some €1.9 million was entered at the Commercial Court on consent against Dr Reilly, “Seafoam”, South Shore Road, Rush, Co Dublin and four others jointly and severally under a settlement of proceedings over an alleged contract to buy the nursing home

The four others were - Paul Kelly, Mountjoy Square, Dublin; Dilip Jondhale, Pococke Upper, Johnswell Road, Kilkenny; Ciaran Flanagan, Grattan Court, Inchicore Terrace South, Dublin 8, and Fine Gael Cllr Anne Devitt, Lispopple, Swords, Co Dublin.

A stay on execution of judgment was granted until April 30th 2012 and the five also consented to indemnify the plaintiffs concerning any liability to Bank of Ireland under a Co-Ownership Agreement relating to the nursing home.

The plaintiffs are Michele Mellotte, Tullamore, Co Offaly, and Orla Higgins, Ashfield Road, Ranelagh, Dublin, both solicitors; John Caulfield, Belgrove Road, Clontarf, Dublin, John McGreevy, Mount Prospect Avenue, Clontarf, Dublin and John Whately, Ardee Road, Dundalk, Co Louth, all doctors; Garry Smyth, a civil engineer, Ailesbury Grove, Dundrum, Dublin; Tom Murphy, an IT consultant, Wynestown, Oldtown, Co Dublin and Michael Morris, Chelmsford, Celbridge, Co Kildare.

In their Commercial Court action, the plaintiffs had alleged, under an agreement of November 2000, Dr Reilly and four others were to buy the Greehills nursing home for €1.95 million, plus VAT, and to secure the release of the plaintiffs from all liabilities to Bank of Ireland concerning the property.

It was claimed notices served in April and May 2011 requiring that agreement to be performed had expired and the defendants were in default. The nursing home was a commercial success and a valuable business asset, the plaintiffs also claimed.

Bankruptcy proceedings were subsequently brought aghainst Dr Jondhale who then issued other procedings seeking orders under the Land and Conveyancing Act aimed at securing the sale of the nursing home. It is understood Dr Reilly and several other of the parties involved have indicated they would agree to a sale which could ultimately lead to the February 2012 judgments being discharged.

Mr Justice Cooke was told the matter could be adjourned to October 15th.