Tuesday, 21 October 2008

Council is sued in €40m building row

DEVELOPER Bernard McNamara has claimed that Dublin city councillors were guilty of negligence when they decided to protect a number of early 19th century properties, which effectively halted his €40m development at Merrion Road in Dublin.

In a separate unrelated case, Mr McNamara is facing legal proceedings to compel him to pay €7.5m to five businessmen for their shareholdings in property company Novorstan Ltd.

It is claimed that Novorstan Ltd, with offices at Clanwilliam Court, Dublin 2, was formed in 2004 to acquire properties within a site adjacent to Grafton Street. It aimed to carry out a major commercial development on the site.

Mr McNamara is being sued by the other five shareholders arising from an option deed of September 2004. They claim the minimum amount due to them under the deed is €7.5m.

The shareholders were: Mr McNamara, Ailesbury Road, Dublin 4; Gary Smith, Hazelhatch, Newcastle, Co Dublin; Ivor Dougan, Booterstown, Co Dublin; Paschal Taggart, Fitzwilliam Square, Dublin; Terry Cooney, a tax consultant of Fitzwilliam Square, Dublin; and Shane Taggart, a banker with an address at Brompton Road, London.

It is claimed €3.17m is due to Mr Smith with the same amount due to Mr Dougan. Paschal Taggart claims to be owed €85,000 while Terry Cooney and Shane Taggart each claim to be owed €384,750.

That case was adjourned to next Friday for mention.

Meanwhile, in his case against the city council, Mr McNamara and his company Radora Developments Ltd say councillors made an "unjustifiable" decision to list properties at 207-223 Merrion Road as protected structures.

The judge adjourned the case to November 17.

Tim Healy
Irish Independent


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