When the former chief executive of the Murphy Group, Mr Liam Conroy, filed proceedings for wrongful dismissal in the Isle of Man, Mr Joe Murphy snr ordered the sale of all his lands in Ireland as he was concerned about the Revenue, the tribunal was told.
Mr James Gogarty resumed giving evidence yesterday. He said when Mr Conroy filed the affidavit in the proceedings for his wrongful dismissal case, the result was: "He (Mr Murphy) wanted to dispose of all the lands and remove the assets outside the jurisdiction because of the implications in that affidavit, that if the Revenue was after him they would take the trust off him." Mr Gogarty said Mr Murphy was very concerned about disposing of the properties: "The affidavit motivated Mr Murphy to dispose of all his lands in Ireland and to realise his assets and get them out of the country and even to the extent that Duffy Mangan and Butler would revalue them and discount them so that there wouldn't be any great big problem in selling them and realising their value."
In April 1989, Mr Gogarty had gone to London to meet Mr Murphy, mainly about his pension. Mr Murphy asked him to meet later at a solicitors' firm, Pickering Kenny and Associates.
Mr Edgar Wadley, of Midgley Snelling and Associates, welcomed him and did the talking. He said it was fortunate that he (Mr Gogarty) had arrived as he could be of great help to them. Mr Gogarty said Mr Wadley said they had been discussing a case that Mr Conroy had brought against Mr Murphy and his company for wrongful dismissal in the previous year and proceedings were being taken in the Isle of Man. They were discussing a sworn affidavit made by Mr Conroy and an affidavit made in support of Mr Conroy by Mr Brendan Devine, who was secretary of all the companies. Mr Gogarty said they thought he could be of great help in making an affidavit in support of Mr Murphy. He (Mr Gogarty) said he would help but he had to refer to documents at home in Dublin. It would take some time and he also wanted to look at the affidavits.
In the course of the meeting, they discussed problems arising from the affidavit. Mr Murphy was very worried that it would come into the public domain.
Mr Gogarty said Mr Murphy wanted to dispose of all lands and remove his assets out of this jurisdiction. He was concerned that the Revenue was after him.
Mr Murphy told him to organise the sale of lands. He (Mr Gogarty) said he would prefer to put them through the auctioneers. Mr Murphy said he did not want them to go for public auction. Mr Gogarty told him it could be done by private treaty. Mr Murphy agreed it should go to Duffy Mangan and Butler and it would liaise with him (Mr Gogarty). As a result, he told Mr Fred Duffy he would have the retainership of the sale of the lands. They agreed on 2 per cent auctioneer's fees. "That's what initiated the disposal of the properties," Mr Gogarty said.