An interim ruling in relation to the controversial redesign of Eyre Square in Galway has found in favour of the construction company which walked off the project. Lorna Sigginsand Enda Cunninghamreport.
The ruling, which is still the subject of continuing arbitration between Galway City Council and the company, could cost the local authority "millions" in compensation and legal fees, according to Fine Gael councillor Padraig Conneely.
The cost of the project, originally estimated at £1 million (€1.26 million) when first proposed in 1995, is now approaching at least €9.5 million.
The refurbishment plan was bitterly opposed at the time, due to proposals to fell existing trees, and was the subject of delays and cost increases after an Bord Pleanála approved it in November 2002. It was eventually completed in April 2006.
Galway City Council has said that it is bound by a confidentiality agreement as part of arbitration, which is "ongoing", and says that there are "a number of matters before the arbitrator for adjudication".
It could neither confirm nor deny yesterday that an interim ruling had been issued against it, as a result of arbitration proceedings entered into after the contractors for the project, Samuel Kingston Construction Ltd (SKC), pulled out in June 2005.
At the time, SKC had been paid €3.7 million of the €6.3 million for the job, and SIAC Construction Ltd was appointed in September, 2005, to finish the work.
Solicitors A&L Goodbody, acting on the local authority's behalf, also said in a statement last night that "statements" published yesterday regarding the content of the award "are completely inaccurate and portray a grossly distorted version of what has in fact been decided at this preliminary stage".
This was a reference to a report in the City Tribunenewspaper, which said that an interim ruling had been made in favour of the construction firm.
The solicitors said that "arbitration proceedings are incomplete and are unlikely to be complete for some considerable time."
" In the event that it should subsequently transpire that details of the award have been released by or on behalf of Samuel Kingston Construction Ltd we will be advising Galway City Council as to the remedies available to them for breach of the obligation of confidentiality and generally," said A&L Goodbody.
The arbitrator appointed to hear the case between the city council and SKC issued a ruling in favour of the developers in October, and is now expected to hear arguments from SKC's legal team in relation to compensation.
This may comprise money owed for work on the square, as well as legal costs and potential earnings lost.