A LEGAL action against one of property developer Paddy Kelly’s companies over rent arrears for a €10 million property at Smithfield in Dublin has been settled.
Chris Kelly, a director of Redquartz Smithfield Ltd, told Mr Justice Peter Kelly at the Commercial Court yesterday that the rent arrears of some €123,000 had been paid, as had rent up to July. The annual rent for the property is some €550,000, the court previously heard.
On that basis, the judge struck out legal proceedings brought against Redquartz by John and Joseph Wickham, owners of the Smithfield property, in which they had sought orders for repossession of the property. Mr Justice Kelly said the payments made entitled Redquartz to relief against a repossession order in circumstances where there was no other breach of covenant identified.
In evidence, Mr Kelly said there had been a problem collecting rents on the site in general and this had led to his company’s difficulties with the landlords. Those difficulties had now been resolved to the satisfaction of both Redquartz and the Wickhams, he said.
In response to concerns expressed about the solvency of Redquartz by Declan McGrath, for BrownBag Films Ltd which operates from the Smithfield property, Mr Kelly said he was satisfied Redquartz would be able to pay the legal costs incurred by BrownBag as a result of the action.
Damien Keaney, for Redquartz, objected to Mr McGrath raising issues about the solvency of Redquartz in circumstances where BrownBag had offered no evidence on that issue. There was no gainsaying what would happen in the future and he was concerned Redquartz was being “singled out”.
Mr McGrath said his concern was to establish Redquartz would be able to pay his client’s costs. Mr Kelly said the firm would be able to meet the costs order and there was “a clear path going forward”.
