A MAJOR legal action to decide liability for a bill of up to €60 million to repair damage allegedly caused by the use of “defective” infill in the construction of hundreds of houses on estates in Co Dublin will open next Monday.
The outcome of the case related to three estates is being watched by some 600 homeowners on those three and other housing estates, many of whom are expected to prosecute their own legal proceedings.
Mr Justice Paul Gilligan is to hear the case which opens on Monday before the Commercial Court, sitting in Clonskeagh. He will be assisted by two assessors – one an expert geologist and the second with engineering expertise.
The action has been listed for 12 weeks but may last considerably longer, even up to a year, according to some legal sources.
The proceedings have been brought by four construction companies – Hansfield Developments, Viking Construction, Menolly Properties and Menolly Homes – against three companies in the Lagan group – Irish Asphalt Limited, Lagan Holdings Ltd and Lagan Construction Ltd.
The proceedings arise from alleged defects in hundreds of houses on three estates in Co Dublin – Drynam Hall, Kettles Lane, Kinsealy, Co Dublin; Beaupark, Clongriffin, and Myrtle, The Coast, Baldoyle. A range of tests have been carried out on the affected houses in preparation for the court action and the results of those will be outlined.
The case will begin with a 380-page opening statement which will be outlined to the judge on behalf of the plaintiffs. The Lagan companies will immediately follow with an extensive statement outlining their defence to the case.
The first three plaintiff companies were involved in construction of the Drynam Hall estate, while Menolly Homes was involved in the other two developments.
It is claimed aggregate infill bought from Irish Asphalt Ltd (IAL) was used in the construction of all three estates and was placed under the floors of various buildings and under common areas such as roads and footpaths.
The infill came from IAL’s quarry at Bay Lane, near Kilshane, north Co Dublin. It is alleged to have contained unacceptable excessive levels of pyrite, making it susceptible to swelling which, it is alleged, consequently occurred, causing damage to the houses, roads and footpaths.
Menolly Homes previously said it had undertaken to the owners of affected homes and two creches within the estates to fund the cost of remedial works to affected units, arrange removal facilities and provide alternative accommodation while remedial works are under way.
However, despite that undertaking, Menolly says it and the other plaintiffs have received correspondence from solicitors acting for some homeowners in which admissions of liability were demanded as well as compensation for alleged loss and damage.
The companies have expressed concern about being exposed to litigation as a result of the damage which they allege was caused by the allegedly defective infill.
The plaintiffs claim the defendants were negligent and in breach of contract in relation to the infill and are obliged to indemnify the plaintiffs for remedial works and related expenditure on the estates.
In separate proceedings which will be affected by the decision in the Menolly case, Killoe Developments Ltd has claimed it faces being sued by up to 150 home-owners as a result of building houses in Clongriffin, Dublin, with infill allegedly containing unacceptable excessive levels of pyrite.
Killoe, with registered offices in Lucan, Co Dublin, claims the three Lagan companies are obliged to indemnify it for all costs and liabilities incurred by it as a result of the use of allegedly excessive levels of pyrite in the Beaupark estate.
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