Judge warns councillor on questions over land deals

OFFALY FIANNA Fáil councillor Gerard Killally and his business partner, former Offaly GAA football manager Richard Connor, have…

OFFALY FIANNA Fáil councillor Gerard Killally and his business partner, former Offaly GAA football manager Richard Connor, have been warned by a High Court judge that they must provide sworn answers to questions put to them in a legal dispute over “secret profits” allegedly made by them from a number of land deals.

Mr Killally and Mr Connor, who represented themselves in court yesterday after their solicitors were granted permission to come off record (withdraw from the case), were directed by Mr Justice Peter Kelly to provide the sworn answers by Thursday afternoon and to appear in court again on Friday when they face an application for an accounts freezing order.

Mr Justice Kelly warned both men that failure to provide the sworn answers to the questions posed would have “serious implications”.

He said the questions had been put because their defence to the claims against them was a blanket denial and the court needed to know the precise issues involved.

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Mr Connor, who had earlier asked for time, said the answers would be provided and added he had no intention of disposing of his assets.

Mr Killally said they had dispensed with the solicitors acting for them because they ran out of funding for them but would try and find someone else to take on their case.

He added there were issues relating to breach of fiduciary duty on the other side.

Remarking that that was “operating on a bit of a wing and a prayer”, the judge noted a bank had previously obtained judgment for €2.6 million against Mr Killally and his wife arising form commercial loans made to them.

Earlier, Shane Murphy SC, for the plaintiffs, said the questions to which sworn answers were sought had been served on both men last December.

They were “very simple” questions relating to the claims of secret profits from land deals, but there had been no response to date.

His clients were concerned about the passage of time and about recent correspondence indicating the defendants had closed offices in a number of locations, including Portarlington and Tullamore.

It was in those circumstances his clients were anxious to proceed with the case and they also believed that the court should intervene with a freezing order.

Given that the solicitors acting for both men had just been permitted to come off record, the court might believe a short adjournment would be necessary in the interests of justice, Mr Murphy said.

Mr Justice Kelly adjourned the case to Friday but directed the sworn responses must be delivered by Thursday afternoon.

Mr Killally and Mr Connor, practising as Gerard Killally Auctioneers, are being sued over “secret profits” of several million euros allegedly made by them from a number of land deals in Co Offaly.

Adrian Daly, Racefield House, Cappincur, Tullamore; Declan Guing, Carrick Road, Edenderry; and Frank Lawlor, Clonmullen Lodge, Edenderry, brought the case over partnerships formed between various combinations of the sides to acquire and deal in lands.

It is claimed the defendants introduced the respective partnerships to the deals, acted as negotiators and agents for the partnerships and made secret profits from deals which were not disclosed to the partnerships.

The plaintiffs are seeking damages for alleged negligence, misrepresentation, breach of duty, breach of contract and also want an inquiry for damages for alleged unjust enrichment.

One of the claims relates to the Daingean Road Partnership formed in 2005 between Mr Guing, Mr Lawlor and the defendants to acquire and deal in lands at Cappincur, Tullamore.

It is claimed the partnership was to acquire those lands for €6.5 million from another party and this was the best price available.

It is claimed the defendants did not disclose they had an interest in the transaction and concealed the true nature of the transaction.

A series of secret transactions were procured by the defendants whereby the lands were first sold for €5 million, leaving the defendants making a secret profit of €1.5 million, it is alleged.

In separate proceedings last December, Mr Justice Kelly ordered Mr Killally and his wife Naomi, of Shean, Edenderry, who was separately represented, to repay a sum of some €2.6 million to Bank of Ireland arising from commercial loans.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times