Mr James Gogarty yesterday denied that his rapport with Mr Michael Bailey over the sale of land in 1988 led to them going to Mr Ray Burke's house in June 1989 and paying him money.
When it was also put to him in cross-examination that Mr Joseph Murphy jnr and Mr Frank Reynolds were not present with them at Mr Burke's house, he said this was not true.
Mr Garrett Cooney SC, for the Murphy group, had suggested to Mr Gogarty that the rapport that built up with Mr Michael Bailey over the sale of land at Forest Road, Swords, not only led to him negotiating the sale of the other Murphy lands but also to them making arrangements whereby they went to Mr Burke's house in June 1989 and paid him money.
Mr Gogarty said: "Incorrect."
Mr Cooney asked if he developed a rapport with the Baileys after the Forest Road sale.
Mr Gogarty said: "Yes, I did. I had great respect for them."
Mr Cooney said that rapport implied a degree of understanding and friendship. Mr Gogarty said he would not deny that. Counsel asked if that degree of understanding led to the sale of the bulk of the lands in November 1989.
Mr Gogarty said that was not true. He said Mr Roger Copsey took over the sale of Forest Road. It did affect their relationships, but he felt sorry for Mr Bailey as he had to pay £200,000 extra as he was trumped up by Mr Copsey.
Mr Cooney said when he last cross-examined Mr Gogarty, they had established four facts concerning the events in June 1989. There was a letter dated June 8th which arrived on the same day.
That day was preceded by two meetings attended, Mr Gogarty had said, by Mr Michael Bailey, Mr Frank Reynolds, Mr Joseph Murphy jnr and Mr Gogarty, at which payment to Mr Burke was discussed.
On June 8th, when Mr Gogarty arrived at Santry after receiving a telephone call from Mr Reynolds, £30,000 in cash had been, or was about to be, obtained. The meeting with Mr Burke took place.
Mr Cooney said Mr Gogarty had said there was a cheque for £10,000 which was added to £30,000 cash. "Now I have to put it to you, Mr Gogarty, that to a very large extent each one of these events, as you have described it, is an invention, it is a fabrication by you?" Mr Gogarty said: "It wasn't an invention."
Mr Cooney said: "And I have to put it to you that Mr Joseph Murphy jnr had no hand, act or part in these events."
Mr Gogarty said he did not accept that. Mr Cooney said Mr Murphy jnr was not present at the two meetings before or on June 8th or at Mr Burke's house. Mr Gogarty replied: "That's not true."
Mr Cooney also putit to Mr Gogarty that Mr Reynolds had no involvement in these events. Mr Gogarty said that was not true.
Mr Cooney said he put it to him that the first time Mr Murphy jnr met Mr Michael Bailey was at arbitration proceedings three years later in 1992. Mr Gogarty said that was Mr Murphy's version.
Mr Cooney said Mr Murphy would say he never met or knew of Mr Bailey except as a purchaser of lands, but he never met him personally until the arbitration proceedings. Mr Gogarty said he could not speak for Mr Murphy.
Mr Cooney said Mr Reynolds would say the first time he met Mr Michael Bailey was in the summer of 1990. Mr Gogarty disagreed. Mr Cooney said at that time Mr Murphy jnr was about 26 or 27 years of age and entered his father's business in the UK and apart from being appointed a director of JMSE in 1988 during the boardroom battle, he had no participation in the Irish company.
Mr Gogarty said he did not accept that.
Mr Cooney said that when the lands in north Co Dublin were to be sold, Mr Gogarty conducted most, if not all, of the negotiations. Mr Gogarty said: "Not at all."
Mr Cooney said there was a meeting with Mr Denis McArdle, solicitor, in 1992 attended by Mr Fred Duffy and Mr Kevin Duffy of Duffy Mangan and Butler about the on-going arbitration between Bovale and Lajos, the owner of the land. Counsel said Mr Duffy had said Mr Gogarty decided the price with Mr Bailey.
Mr Gogarty said Mr Bailey had told him that he did not want to deal directly with Duffy Mangan and Butler.
Mr Cooney said agreement was reached for £2.4 million and at a meeting where that was decided he was the only representative of the vendors or owners. Mr Gogarty said that was true.