A lawyer representing five residents of a Co Wicklow retirement village claimed in the High Court yesterday that they had been "shamefully exploited" by the former owners of the village complex regarding a care agreement.
Asked by Mr Justice Kearns why 75 per cent of the villagers had agreed to a proposal to abrogate their rights in a care agreement, Mr Frank Callanan SC said they were old, insecure and frightened and had been shamefully exploited.
Mr Callanan represents five residents of Clonmannon Village, Co Wicklow, who are seeking the restoration of a care agreement and access to Clonmannon House, which, they claim, has been closed to them, with the exception of the basement.
The action is against a husband and wife, Mr Roderick McGrath and Ms Jane McGrath, and a company, Mac Enterprises Ltd, which, the residents claimed, was owned and controlled by the McGraths. The couple has since sold its interest in the village.
In evidence, Ms McGrath said that when they bought the village in 1996 they paid £270,000 for the complex and spent another £300,000 restoring it. Two of the bungalows were freehold and she and her husband owned five others.
Thirty-one bungalows in the village were unoccupied now and only 14 houses had occupants, she said. They had been unable to sell one bungalow due to ligitation.
Ms McGrath said she had meetings with the villagers and had submitted questionnaires to the remaining 39 persons who had leases. About 75 per cent had wanted a new care agreement.
In 1993 the annual cost of the old contract to a single person was £6,500 and to two people £9,000. An actuary believed the annual cost would now be between £10,000 and £12,000.
The majority had agreed to pay £2,700 per annum for a new "a la carte care contract".
When the McGraths took over they realised there was a "bad atmosphere" and that they were swimming against the tide, Mrs McGrath said. Obstacles were put in their way, but she realised they also had a huge amount of goodwill and support.
They had converted 4,000 sq ft of the ground floor of Clonmannon House for residents' use. The majority of the villagers had agreed that she and her husband with their four children could live in the two upper floors.
The villagers were provided with a bar, sitting-room, diningroom, reading-room, laundry and ironing facilities.
Mr Callanan said Clonmannon House was integral to the village, but the McGraths, contrary to earlier agreements, had restricted access to the premises.
While it appeared the majority of villagers were willing to acquiesce, his clients had a major dispute about the manner in which the assent of that majority was procured. His clients never agreed to the care agreement being varied. The hearing was adjourned until today.