LAWYERS FOR two solicitors being sued over an alleged land deal “scam” in Co Offaly allegedly promoted by former Fianna Fáil councillor Gerard Killally have asked the High Court to allow them cease representing their clients due to “difficulties” about instructions.
Issues were also raised whether RSA insurance group, insurers of the defendant solicitors — John Bourke and Francis O’Doherty, practising as Bourke Co, Drimnagh Road, Walkinstown, Dublin — will continue to indemnify them in the case.
The developments, described as “significant and serious” by Mr Justice Michael Peart, came after evidence had concluded in the action over a deal involving lands at Mount Lucas, Daingean, Co Offaly, being sold for €10.6 million to a group of investors in May 2007 on the same day Mr Killally had bought them for €4.7 million.
The case opened last month and legal submissions were due to be heard this week but the developments on the 15th day yesterday raised the possibility the entire action may be aborted.
Saying he was very concerned a “shadow” now hung over the integrity of evidence or material given to the court, Mr Justice Peart adjourned to March 1st the action, plus the application to come off record, so the sides can address several issues including insurance.
The proceedings are by a number of investors who allege Mr Killally made secret profits from the sale of the lands. They have also sued Bourke Co and various other alleged advisers, claiming negligence and breach of duty. No defence has been entered on behalf of Mr Killally, a bankrupt, while the other defendants have denied the claims.
Yesterday, Mark Connaughton SC, for Bourke Co, said the legal team representing Bourke Co wanted to come off record. Counsel referred to an affidavit of Hugh Millar, a partner in Crowley Millar Solicitors, who said his firm was on record for Bourke Co but “certain difficulties” had arisen “in the past few days” relating to his instructions.
He and senior counsel had been advised by their respective professional bodies, due to the difficulties with instructions and the inability to resolve those, they should not continue to represent the defendants, Mr Millar said.
Mr Connaughton said he could not elaborate on the difficulties and the defendant solicitors should be given time to consider if they wanted to seek alternative representation. Another solicitor, saying he was appearing in a personal capacity for the defendant solicitors, asked that the case be adjourned for two weeks.
Hugh O’Flaherty, for Command Managed Services Ltd, and two of its directors, Cyril Keegan and Cliff O’Brien, said his side had “very serious concerns” about evidence by the solicitor defendants relating to whether his clients gave instructions to have contracts (for the selling on of sites on the Mount Lucas lands) rescinded in August 2007. He agreed with the judge there was a “cloud” over this evidence.
Mr Justice Peart said, while he appreciated there were reasons why the court could not be fully informed about the reasons for seeking to come off record, the absence of this information had capacity to cast doubt on the integrity of the trial to date and the evidence given. There was now an issue if the trial should be aborted and heard by another judge.
