A CO Wicklow golf club owner may have diverted to his own use more than £250,000 paid by members to build a clubhouse, it has been alleged in the High Court.
Mr Colm Allen SC, for the trustees of Kilcoole Golf Club, told Mr Justice Kelly his clients believed the money had been totally dissipated without a stone having been turned".
He said they believed Mr Michael Kunz and co defendants Mr Brian Williams, Ballyphilip Farms Ltd, and Ballyphilip Golf Ltd, were now inviting subscriptions for new club membership from members of the public who were destined to suffer the same fate as his clients.
The club secretary, Mr Thomas Deely, of Meadowbrook, Kilcoole, said Mr John McCarthy, Mr Thomas O'Riordan and Ms Niamh Laverty were club trustees who were seeking injunctions against the defendants on behalf of the club members.
He said the club used to be known as Glenroe Golf Club which stood on lands owned by Ballyphilip Farms Ltd, of which Mr Kunz was a director. Ballyphilip Golf Ltd had been formed by Mr Kunz and his wife, Deirdre, to manage the golf course.
Mr Deely said membership limited to 250 had been advertised in 1991 and prospective members were introduced to Mr Brian Williams of Golf Ireland Ltd, a spokesman for the new development, and producer of a brochure promoting the club.
He said members were shown a drawing of a clubhouse and had been told in early 1993 that a fully licensed clubhouse with full seven day facilities would be built. Two hundred and fifty members paid £1,000 each and agreed annual fees of £300 and VAT.
Despite numerous requests there has been no indication that the defendants propose to build a clubhouse," Mr Deely said.
Mr Deely said that for the past five years members had been deprived of a clubhouse and had been obliged to use two wooden temporary buildings with inadequate washing and toilet facilities and social area.
He said investigations in the Companies Office uncovered charges registered against Ballyphilip Farms Ltd and members decided to withhold annual subscriptions for 1996. He believed Mr Kunz was in severe financial difficulties and had a substantial tax liability.
He said members were afraid: their money had been diverted and it was not now the intention of the defendants to use the money to erect the clubhouse. They feared their 1996 annual subscriptions would be used to pay the debts of Mr Michael Kunz.
Mr Deely said members were locked out in January last and had to negotiate a temporary playing arrangement with Roundwood Golf Club.
He said the defendants had purported to set up a new club called The Breaches Golf Club and had, in advertisements promoting it, stated that a clubhouse was in the course of construction. He believed a contractor had pulled out of the deal because of a lack of funds to pay him up front for materials.
Mr Justice Kelly refused the trustees leave to serve the defendants with short notice of their intention to seek an injunction on Monday next just prior to a meeting between the parties. He said the matter had been going on for a number of years and the last incident complained of dated back to May of this year. He felt it would be totally unwarranted to abridge the stipulated period of four clear days notice to the defendants of such an application.
The court heard the plaintiffs would be seeking an injunction restraining the defendants from dissipating their assets below the sum of £500,000 and an order to reopen the golf course to members.