An attempt by tenants in 120 local authority flats to buy out their apartments for a fraction of their value was rejected in the Circuit Civil Court yesterday.
Mr Justice Esmond Smyth, giving judgment in a test case, said there was never a valid and enforceable contract for sale by Dublin City Council of a flat at O'Rahilly House, Ringsend, Dublin, to sitting tenants Samuel and Frances Mateer.
Mr Justice Smyth heard claims by tenants in eight apartments at O'Rahilly House, who claimed a declaration allowing them to purchase their homes for an average of €7,500 each.
Another 112 tenants have been awaiting the outcome of the Mateer test case.
The flats, in an area that has become a desirable district near Ballsbridge, are currently valued conservatively at €350,000 each.
Counsel for the eight residents, James Macken SC, told the Circuit Civil Court their claim was that in 1988 they had been told by the then Dublin corporation they could buy out their homes.
After having replied to the local authority's inquiries on a proposed sales scheme they had been informed in 1990 the buy-out price would be about €19,000, reduced to about €7,500 because of their extended tenancies.
The local authority had withdrawn the sales scheme in 1995 and the eight tenants were claiming specific performance of an agreement they alleged the city council had made with them.
Mr Justice Smyth told George Brady SC, for Dublin City Council, that while he had to dismiss the Mateers' claim he would not make an order for costs against the couple.
He said it had been claimed a letter from the Mateers to the city council in December 1990 was the final document in a series of written exchanges and that once this letter had been received by the local authority it had constituted a completed application to buy the flat and that there was nothing further to be done but to execute the transfer.
Judge Smyth said the words contained in the Mateers' reply ". . .please submit my offer to the city council. . ." were inconsistent with the existence of a concluded agreement.
The claim on behalf of the Mateers was taken by Guilfoyles solicitors, Cork, who had been engaged by the Ringsend tenants after the company had successfully handled 70 similar applications in Cork city.
The company is handling applications for about 1,800 tenants in Dublin and David Guilfoyle said yesterday following the judgment that consideration would now be given to an appeal to the High Court.