Greencore 'failed to disclose' plant safety issues

THE GREENCORE group failed to disclose, when selling premises of Drummonds Ltd in Co Louth last year where two workers died just months later, that the Health and Safety Authority (HSA) had written three years earlier seeking for the premises to be brought up to the necessary safety standards, it has been claimed before the Commercial Court.

Paul Farrell (35), a father of three, and 19-year-old Terry Brennan from Tallanstown, Co Louth, died after collapsing at a Drummonds grain feed plant at Knockbridge, Co Louth, on August 10th, 2009. It is believed both men may have been overcome as a result of a build-up of gas in a grain pit.

Freshmills Holdings Ltd (FHL) is now suing Greencore alleging breach of warranties arising from FHL’s purchase for €15.5 million in May 2009 of Drummonds Ltd (then owned by Greencore subsidiary Food Industries Ltd).

It is claiming damages for alleged misrepresentation, nondisclosure and/or breach of agreement in relation to a disclosure letter of May 19th, 2009 and the share purchase agreement of the same date.

In proceedings admitted to the Commercial Court yesterday by Mr Justice Peter Kelly, FHL wants Greencore to pay the costs of any fines and penalties which may be imposed on it by the HSA arising from the deaths of Mr Brennan and Mr Farrell.

FHL also wants the costs of any claims against it as a result of the deaths but notes Drummonds Ltd had an insurance policy which may provide an indemnity against such claims.

The cost of measures required to ensure all five Drummonds premises meet the required health, safety and other standards is also sought. It is claimed the various premises, despite the warranties, were not, prior to August 10th, 2009, in compliance with the required standards.

Damages and losses are further sought under various other headings in amounts yet to be quantified. The total claim is expected to exceed several million euro.

The case arises from a share purchase agreement with Greencore of May 2009 under which FHL claims it acquired the entire issues share capital of Drummonds Ltd, which operated premises in Co Louth at Knockbridge, Drogheda and Ardee, plus two premises at Navan and Clonee in Co Meath.

FHL claims it had learned, after the deaths, the HSA had written to Drummonds Ltd in 2006 outlining certain measures which Drummonds should take to bring its facilities up to the required health, safety, fire and other standards. Two electricians’ reports had also been provided to Drummonds in 2008, it also claims.

Since the deaths, FHL says it has engaged engineering consultants to inspect the five premises in relation to assessing the works necessary to bring them up to the required standards.