A resolution of a dispute over plans by builder Tom Bailey’s family to develop a €40 million land bank in Co Kildare has broken down, the Commercial Court heard.
Last month a preliminary matter in the dispute was due to be heard when a judge was told the entire dispute had been “resolved in principle” and it was adjourned for the settlement to be finalised in writing.
However, when the matter returned before the Commercial Court on Monday, Mr Justice Denis McDonald was told there was a breakdown after the agreement in principle was made.
Discussions were continuing between the parties but, the court was also told, it did not appear they could be advanced.
Mr Justice McDonald said it was very disappointing to be told this as the court had been ready to hear part of the case last month and the judge due to hear it had read the legal papers. He adjourned the case to December.
The dispute concerns Mr Bailey’s family and a firm that acted as a trustee for a discretionary trust involved in the planned development of a €40 million land bank in Kildare
One case was brought by members of the Bailey family against the trustee firm and a second was then brought by the trustee firm against Mr Bailey.
The first case was brought by Mr Bailey’s wife, Caroline Bailey, and their children, Ellen and Jeff, against Citadel Corporate Services Ltd.
Citadel, whose sole director is businessman Ronan Barrett, was an administrator/co-trustee, along with Sopal Ltd, of the Culcommon Trust which Mr Bailey set up and whose main beneficiaries were his wife and two children.
The trust’s main asset is 250 acres of development land on the border of Kildare and Meath, at Moygaddy near Maynooth.
The land is held through Isle of Man-registered Skycastle Ltd which has proposed a major development including a technology/business park, residential units, sports campus and public hospital, on the land.
To unlock funds for the development debt funding needed to be raised in order to purchase shares held by a company called Sky Castle Holdings under call options involving various other companies.
One of those companies is Moygaddy Holdings, of which Mr Barrett is also a director, which owns 35 per cent of the shares in Sky Castle Holdings.
Mr Barrett, who had been involved with Mr Bailey in another successful land acquisition and development project in Kilcock, began in early 2021 to reference a desire to exit his/ Citadel’s role in the trust and in a related company called Glenvala Limited Partnership, it was claimed by the Bailey side.
However, a dispute arose when Mr Barrett said he should get a shareholding/profit share in the Culcommon Trust development project.
The first case was entered into the Commercial Court earlier this year followed by the second case brought by Citadel against Mr Bailey himself.
Citadel sought a declaration that it has a binding contract for the 25 per cent share which was allegedly agreed at a meeting with Mr Bailey at a meeting in the InterContinental Hotel, Ballsbridge, Dublin, in December 2021.
