Seán Dunne to lodge €1m in court pending judgment

DEVELOPER SEÁN Dunne is to lodge €1 million in court pending the outcome of legal proceedings brought against him by estate agents over €1.5 million in alleged unpaid fees.

CB Richard Ellis (CBRE) initiated proceedings in the Commercial Court last month and Mr Justice Peter Kelly was due to hear an application yesterday for summary judgment against Mr Dunne for €1.5 million.

However, the judge was told the sides had agreed the case should go to plenary hearing and Mr Dunne was, within 21 days, to lodge €1 million in court and also lodge a defence and counter-claim. On consent of both sides, the case was adjourned to April.

Last month, the court was told Mr Dunne contended the alleged liability was not his but of one of his companies, Mountbrook Homes Ltd. CBRE contends an agreement involved in the case was made with Mr Dunne personally. The court also heard there was a dispute about the amount of the claim and the level of services provided. CBRE is claiming the fees in relation to a commercial property transaction involving the sale of Riverside IV at Sir John Rogerson’s Quay, Dublin, and its part exchange with another property, Hume House, Pembroke Road.

CBRE director Willie Dowling said Mr Dunne, under an oral agreement set out in a fax of September 15th, 2004, engaged CBRE’s services. While the fax was on the headed notepaper of Mountbrook, the agreement was with Mr Dunne personally and Mountbrook had no involvement “on any level”, Mr Dowling said.

He said the aspect of his company’s fee in dispute related to an investment fee agreed at 0.75 per cent of the sale price, €1.44 million, plus VAT. He later negotiated a reduction of that fee on a goodwill basis to €1.25 million, plus VAT (some €1.52 million).

Mr Dowling said his company carried out the work. Mr Dunne had personally paid the other fees due, and had said he would pay the investment fee once the property transaction was completed, Mr Dowling said, but he did not.