Two legal disputes arising out of the sale of an interest in the Burlington Plaza office block in Dublin have come before the High Court. The actions centre around Lington Development's sale of its 25 per cent share in the block.
Coolbrook Developments, which owns 50 per cent of the property on Burlington Road, Dublin 4, has claimed the sale breached the terms of an owners’ agreement between it and Lington. It alleges Lington breached a requirement to market its 25 per cent interest in the property before entering into a sale agreement.
On Tuesday, Jarlath Ryan, for Coolbrook, sought temporary injunctions including orders preventing sale of the property and restraining Lington taking any further steps in the transaction.
However, Mr Justice Paul Gilligan was told the sale of Lington’s interest had closed earlier that morning, before the injunction was sought. No details of the sale price or the buyer were given.
Ross Aylward, for Lington, argued Coolbrook’s application was, in the circumstances, now moot or pointless and if Coolbrook had any claim against Lington, that was for damages for alleged breach of contract.
Rejected
An offer of €49.2 million by Coolbrook last August for Lington’s interest had been rejected, counsel added.
The injunction application was made while the court was considering separate proceedings by Lington against a financial fund, Dengrove DAC.
Lington last week secured temporary injunctions preventing Dengrove enforcing a security by appointing a receiver over Lington’s interest in Burlington Plaza.
Mr Alyward said this was an unusual case as Lington wanted, following the sale of its interest in the plaza, to pay off what it owed to Dengrove but Dengrove was not giving Lington that information.
Lington assigned its interest in the property to AIB in 2007. That interest was taken over by the National Asets Management Agency and sold on earlier this year to Dengrove.
Rossa Fanning SC, for Dengrove, said his client had concerns, including whether the sale agreement was in breach of the owner’s agreement. Any redemption of what was owed to Dengrove was welcome news, he added.
Mr Justice Gilligan adjourned both cases to Wednesday to allow the sides consider matters and exchange documents in relation to the sale and transfer of funds.
