A BANKRUPTCY summons issued for non-payment of €5.89 million in legal costs and interest against two men at the centre of multiple legal actions arising from the collapse of Bula Mines more than 25 years ago has been dismissed by the High Court.
The Minister for Communications, Energy and Natural Resources and Michael O’Connell had issued the summons last February against Richard Wood, Carrigrohan, Co Cork, and Michael Wymes, Hampton Court, Booterstown, Co Dublin, who were involved in the establishment of Bula Mines in 1971.
Yesterday, Mr Justice Brian McGovern found Mr Wood and Mr Wymes had made out a case for trial concerning validity of the summons on grounds related to whether too much interest was claimed. In light of that finding, he dismissed the summons. The judge said he reached his conclusion “with some disquiet and misgivings” because there was no doubt that both men were very significantly indebted to the Minister and Mr O’Connell on foot of costs orders properly made.
He noted the courts have ruled it is necessary to strictly comply with relevant court rules and statutory provisions in the bankruptcy process because of serious consequences of the process for debtors.
The judge noted the €5.89 million debt arose from a judgment for legal costs obtained against both men in 1998. The legal costs calculated then were €3.29 million and interest up to January 20th last was €2.59 million.
The total now due, €5.89 million, was set out in the affidavit sworn for the purpose of obtaining the bankruptcy summonses.
Mr Wymes and Mr Woods challenged the summons on several grounds, but the judge dismissed all but one of those.
He found Mr Wood and Mr Wymes had raised “a real and substantial issue” for trial relating to whether the amount of the debt was overstated because interest was claimed over a 10-year period when, it was claimed, the Statute of Limitations prevented costs being recovered once six years had expired from the date when interest became due.
Because this issue was at least arguable and had some prospect of success, he must dismiss the summons, he said.
Bula Mines, in which the State was a shareholder, was established by Thomas Roche snr, Mr Wymes and Mr Wood in 1971 to buy a zinc and lead mine near Navan, Co Meath but it collapsed with substantial debts some years later. A series of legal actions has been pursued arising from the collapse.
