A FIRM of solicitors being sued with others over an alleged land deal fraud in Co Offaly allegedly promoted by former Fianna Fáil councillor Gerard Killally have brought court proceedings over the handling of their defence in that case by another law firm, and over insurance issues.
John Bourke and Francis O’Doherty, practising as Bourke Co, Drimnagh Road, Walkinstown, Dublin, have initiated proceedings against Royal Sun Alliance plc (RSA), Horsham, UK, and against Crowley Millar Solicitors, Lower Mount Street, Dublin.
When the case came before Mr Justice Peter Kelly at the Commercial Court yesterday, it was adjourned for a week due to issues related to the service of proceedings.
An issue also arose over whether RSA was the correct defendant in the case.
The case arises as a result of separate legal proceedings in which investors claim lands at Mount Lucas, Daingean, Co Offaly, were sold for €10.6 million to them in May 2007 when, on the same day but unknown to them, Gerard Killally had bought the lands for €4.7 million.
It is alleged he made secret profits from the sale.
Mr Justice Michael Peart has reserved judgment on those proceedings which were brought against Gerard Killally; John Bourke and Francis O’Doherty, practising as Bourke Co and various other defendants, claiming negligence and breach of duty. No defence was entered on behalf of Mr Killally, a bankrupt. The other defendants denied the claims.
In their action against RSA and Crowley Millar, Bourke Co are seeking a declaration they are entitled to an indemnity against either or both defendants over claims against Bourke Co in the action over the Mount Lucas lands.
They want delivery of Crowley Millar’s file in the Mount Lucas case, and damages, including aggravated damages, for breach of contract, negligence, breach of fiduciary duty and for breach of constitutional rights, including the right to a good name.
It is claimed RSA, under a schedule of December 2008, agreed to insure and indemnify Bourke Co and each of the plaintiffs, as principals and partners of that firm, against any civil liability and claims in respect of such liability arising from the provision of legal services by the practice.
It is claimed, under the RSA policy, Crowley Millar were jointly retained by Bourke Co and RSA to appear and act on behalf of Bourke Co in defence of the claim against the Bourke firm in the Mount Lucas case.
In an affidavit, John Bourke said “it appears that Crowley Millar provided other related and as yet undisclosed services to RSA”.
Mr Bourke said Crowley Millar both caused and contributed to a decision by RSA to refuse to provide an indemnity, prejudiced Bourke Co’s defence in the Mount Lucas case and damaged Bourke Co’s professional reputations and practice with a view to assisting RSA to avoid liability under the policy.
