A WIDOW has alleged breach of contract and negligence against a firm of solicitors which acted for both herself and a purchasing developer in the sale of her farm.
Kathleen O’Brien (72), who has five grown-up children, claims she has been left heavily in debt and faces losses of up to €2.5 million after an alleged “Celtic Tiger time” agreement to sell the last 19- acres of her farm did not proceed.
The defendant firm – David J O’Meara and Sons, Mallow, Co Cork – denies the claims. The firm also alleges failure by Mrs O’Brien to disclose the true terms of the contract and claims this was because extra money allegedly paid would have been a fraud on the Revenue.
Opening the case yesterday before the president of the High Court, Mr Justice Nicholas Kearns, Michael Counihan SC, for Mrs O’Brien, said the agreement to sell the land was struck in 2005 when the country was “coming to the peak of the Celtic Tiger”.
The family previously sold part of their 100-acre tillage farm in 1999 to developer Donal McAuliffe, described as a substantial property developer in north Co Cork, counsel said.
After the death in 2004 of her husband, Mrs O’Brien remained in the bungalow on the remaining 19 acres but was worried about burglaries and wanted to live in Mallow town, he added. It was known that agricultural land in the suburbs of Mallow town was due to be zoned for development.
Counsel said a note was taken by auctioneer Liam Mullins in May 2005 confirming Mr McAuliffe would purchase the 19 acres for €3 million, subject to zoning, and in the meantime would pay Mrs O’Brien €60,000 a year.
Mr Counihan said a letter was sent to the defendant firm, which had been the family’s solicitors for many years. David O’Meara was to act on Mrs O’Brien’s behalf in the sale while Kevin O’Meara, a partner, was to act as solicitor for Mr McAuliffe.
Mr Counihan said the drawn-up contract differed from what Mrs O’Brien understood. The sale of the lands for €3 million was subject to planning permission rather than zoning and the contract gave an option to withdraw after the first year, plus an option on the land for 10 years.
This was “a disastrous contract” from Mrs O’Brien’s point of view, Mr Counihan said. He said she bought a house for €440,000 on a bridging loan in Mallow town and, in February 2007, the developer gave her two sums of €10,000.
The court heard the defence would argue this was an agreed “under the counter” payment.
The case continues today.