THE failed multimillion sale of a luxurious country hotel last year has led to a legal battle breaking out between the owners of two well-known historic Irish castles.
The owner of Kinnity Castle, Con Ryan, is being sued by a leading international development and construction company which sought but failed to buy the exclusive Co Offaly hotel last year.
Mr Ryan's solicitors are also being sued by Roscommon development company the Hanly Group, which owns Lough Rynn Castle, claiming it had a signed deal to buy the luxurious hotel.
Kinnitty Castle, one of the leading wedding locations in Ireland, was to be sold by Mr Ryan to international developers the Hanly Group for €14m last year - but the deal broke down.
The deal was agreed in principle and a €2m deposit was handed over. News of the sale hit the headlines at the time but the agreement turned sour.
Now Mr Ryan is being sued by the Hanly Group over his retention of its €2m deposit and for further damages as a result of the collapse of the deal. Mr Ryan's solicitors, Holmes, O'Malley and Sexton, are also being sued for their part in the negotiations and the case will recommence tomorrow week in Dublin's Commercial Court, a division of the High Court.
Under law, in a sale of this type a closing date is fixed. Then the vendor issues a completion order on the purchaser and a stay of 28 days is granted. If that is not met, a forfeiture order is issued and a further 21 days is allowed.
In this case there is a fundamental disagreement as to what transpired.
According to one source close to the Ryan family, both these deadlines came and went - and thus Mr Ryan's solicitor withheld the €2m deposit.
However, the Hanly Group believes that because the deal collapsed it is entitled to its deposit back. It is suing Mr Ryan and his solicitors under a "special performance" provision of the detailed contract.
"We had all our people there on the closing day waiting to close - and he simply didn't show up," said a source close to the Hanly Group.
A source close to Mr Ryan, however, said: "He followed all the procedures, did everything right. It was they who tried to change the deal and he was advised not to go ahead. It is clear they think they have a strong case, but so do we."
Mr Ryan's solicitors, Holmes, O'Malley and Sexton, based in Limerick, are also named as defendants in the case.
In court tomorrow week, Mr Justice Peter Kelly is expected to set a date for a full hearing.
Speculation about the protracted sale of the hotel had a significant impact on wedding bookings, which are the core element of Kinnity's business. However, since the breakdown of the hotel sale, business has picked up again.
This summer will see the Pogues' colourful front man Shane MacGowan marry his fiancee Victoria Mary Clarke, while former Boyzone dancer Shane Lynch will marry his long-term sweetheart Sheena, with whom he was reunited at Kinnitty at his sister Edele's wedding last year.
The Hanly Group has embarked on an ambitious programme of redeveloping Ireland's castle hotels in recent years. The group has spent €40m on the refurbishment and further development of the luxurious Lough Rynn Castle hotel in Co Leitrim and it also retains an interest in the estate of Kilronan Castle in Co Roscommon.
DANIEL McCONNELL
Irish Independent
No comments:
Post a Comment