TWO BUSINESSMEN are suing a solicitor over her alleged failure to advise them of the true nature and circumstances surrounding certain land deals in Co Offaly in which former Fianna Fáil councillor Gerard Killally and former Co Offaly GAA manager Richard Connor made secret profits.
Declan Guing, Carrick Road, and Frank Lawlor, Clonmullen Lodge, both Edenderry, Co Offaly, are seeking damages against solicitor Miriam Kavanagh for alleged negligence, breach of duty, breach of contract, and misrepresentation arising from a number of land transactions.
On the application of Shane Murphy SC, for both men, Mr Justice Peter Kelly yesterday transferred the proceedings against Ms Kavanagh, practising as Miriam Kavanagh Company, of Jamestown, Ballybrittas, Co Laois, to the Commercial Court.
Both men allege they formed a partnership in 2005 (the Daingean road partnership) with Mr Killally and Mr Connor, then practising as auctioneers, to acquire and deal in lands at Cappincur, Tullamore, Co Offaly. They claim they understood the lands were to be acquired by the partnership for €6.5 million from another party.
Mr Guing and Mr Lawlor claim Mr Killally and Mr Connor had failed to disclose they had an interest in the Daingean Road transaction as the other party had received €5 million for the lands.
They claim this meant Mr Killally and Mr Connor made a secret profit of an apparent €1.5 million, the partnership had paid an inflated price for the lands and Ms Kavanagh knew of the circumstances but did not advise them of that. They further claim Mr Killally and Mr Connor also had an interest in another transaction involving another partnership between all four men, the Downshire partnership, formed in 2005 to acquire and deal in lands at Downshire, Edenderry.
They claim the Downshire lands were to be acquired for €11.5 million from another party but Mr Killally and Mr Connor failed to disclose the other party had received €9.5 million, meaning secret profits of an apparent €2 million. Ms Kavanagh, it is alleged, knew of the circumstances but had not advised the plaintiffs.
In separate proceedings by Mr Guing, Mr Lawlor and Adrian Daly, Cappincur, against Mr Killally and Mr Connor, to which Ms Kavanagh has been joined as a third party, she has rejected as “baseless” a claim by Mr Killally that she had advised him it was “okay” not to disclose he had made secret profits. Ms Kavanagh had told Mr Killally what he was doing was “wrong, immoral and constituted sharp practice”, her counsel, Paul Sreenan SC, said.
