Noel Smyth's company Redfern has said the delay in progressing the Tallaght project will cost it €998,188 per week in lost tax relief throughout 2007.
It has further claimed it will lose €672,853 per week during the first seven months of 2008, for the same reason.
The total potentially involved is more than €70 million and Redfern claims the loss arises from the "irrevocable" loss of tax relief which would have been available had the development been completed on schedule.
The defendants, Larry O'Mahony and Thomas McFeely, have rejected Redfern's claim that it had a binding agreement with them for the development of the site. Yesterday the court joined Liam Carroll and two companies to Redfern's action.
In its statement of claim Redfern said the alleged agreement would have seen the two developers, Mr O'Mahony and Mr McFeely, ensuring that their company, Lowe Taverns (Tallaght) Ltd would have no assets or liabilities other than a licence linked to the Tallaght development, and a debt with the Bank of Scotland for a maximum of €30 million.
Redfern for its part was to ensure a company it owns, Alburn, had no assets or liabilities other than "the Square agreement", lands at Sandyford, a liability to Redfern of €2 million, and a debt of €5.7 million to Irish Nationwide Building Society.
These conditions were to be in place when the alleged agreement was proceeded with. Redfern would hold 50 per cent of Alburn as would the two developers. The two sides would have equal board representation, according to the Redfern statement of claim.
In the event of certain types of disagreements, the alleged agreement would provide for the referral of the dispute to one of four named senior counsel.
The originally listed senior counsel were Dermot Gleeson SC, Paul Gallagher SC, Donal O'Donnell SC, and Michael Collins SC. In August 2005, the name of Hugh O'Neill SC replaced that of Mr Gleeson, according to the court document.
The joining of Liam Carroll to the action taken by Noel Smyth's company, Redfern, is not the first time the two major property developers have clashed.
Mr Smyth fought an unsuccessful battle five years ago when he tried to stop Mr Carroll taking control of Dunloe Ewart plc. Mr Carroll won the process and brought Dunloe Ewart private.
