High Court decision a major blow for Bohemians

DALYMOUNT PARK COURT CASE: BOHEMIANS FOOTBALL Club has lost a High Court case relating to the sale and redevelopment of part of its lands at Dalymount Park in Dublin.

The decision has implications for an agreement between Bohemians and another developer, Danninger Ltd, about the proposed sell-off of the stadium and the club's relocation to a site in Castleknock.

Mr Justice John Edwards yesterday ruled that Bohemians holds a section of the Dalymount lands in trust for the owners of the adjoining Phibsboro Shopping Centre, with whom the football club had been in negotiations for redevelopment works over a number of years.

The judge said he will hear submissions on a later date from counsel for both sides relating to how the lands in question are to be transferred and to any other matters arising from his decision.

The case centred on whether there was ever an agreement between Bohemians and developer Paschal Conroy's companies, Albion Properties Ltd and Albion Enterprises Ltd, over the potential sale of a section of Dalymount adjoining the Phibsboro Shopping Centre which Albion wanted to redevelop at a cost of €200million.

Bohemians claimed any agreement to sell off part of their lands had never moved beyond pre-contractual negotiations and that there was no concluded agreement. Albion argued that the agreement was concluded in February 2003 and it also argued a number of variations of the agreement were also concluded.

During the negotiations, Albion made payments totalling €1.05 million to Bohemians at times when the club was in financial difficulties. The negotiations on the details of the proposed redevelopment over a five-year period broke down a number of times and, by 2006, Bohemians had begun negotiations with a another developer, a building conglomerate, Andorrey, about selling off Dalymount and using the proceeds to build a stadium in Castleknock.

Bohemians later broke off negotiations with Andorrey and entered into negotiations with Danninger Ltd which offered €67 million to buy Dalymount and relocate the stadium.

In May last year, Bohemians sent a cheque to Albion for €1.05 million for the monies it had already received and said it was no longer prepared to continue negotiations with Albion. High Court proceedings were later initiated by both sides.

The court heard, during the negotiations with Albion, Bohemians were concerned about meeting fire safety requirements for any new stand while Albion were anxious to get on with the project and to get written consent from Bohemians to lodge its planning application.

In one attempt to resolve the impasse in July 2005, Bohemians' then president Felim O'Reilly, who is also a solicitor, invited Albion's owner Paschal Conroy to lunch to discuss various issues, including the provision of corporate boxes in the development.

Mr Justice Edwards noted there was "a good deal of alcohol" consumed at this lunch and, while Mr O'Reilly left believing Albion would pay €750,000 to buy out the requirement to provide corporate boxes in the redevelopment, Mr Conroy left believing Bohs "were looking for €750,000" and that would be subject to further negotiation. Mr Justice Edwards said the negotiations showed both sides were engaging in "brinkmanship and a certain amount of posturing."

The judge found Albion was entitled to an interest in the land involved because there was "clear evidence of repeated promises, representations and inducements" that, if Bohemians were paid money on account by Albion, Albion would get the land. He found as a fact Paschal Conroy was repeatedly told he had "a deal."

The judge also found Mr Conroy altered his position in relation to the deal "to his detriment" and that Mr Conroy had devoted much time and resources in an attempt to accommodate the specific needs of Bohemians, particularly in relation to ensuring fire safety requirements would be satisfied.

While it was true the amount of effort and money was small in terms of the overall investment by Albion, it could not be overlooked that €1.05 million was paid in response to specific requests by Bohemians. In the circumstances, it would be "unconscionable" not to transfer the land to Albion, the judge added.