THE DUBLIN Docklands Development Authority has denied that it or its former chief executive Paul Maloney made “representations” to developer Bernard McNamara which induced him to get involved in a joint bid with the authority for the Irish Glass Bottle (IGB) site at Ringsend and caused him massive losses.
While Mr Maloney had written to Mr McNamara in October 2006 concerning the site, the authority has denied he “represented” that it could fast-track permission for its development or could procure a Luas route to the site, Mr Justice Peter Kelly was told yesterday.
The authority also pleads any losses suffered by Mr McNamara and Donatex over the IGB site acquisition are not attributable to its alleged failure to fast-track permission for the site as, it claims, such permission always had to be approved by the Minister for the Environment.
In Commercial Court proceedings against the authority, Mr McNamara has claimed these and other alleged “representations” by Mr Maloney persuaded him to get involved in bidding for the site and ultimately exposed him to claims of more than €108 million.
He claims, following a High Court finding in 2008, that the authority acted outside its powers in how it fast-tracked permission for another docklands development at North Wall Quay, the authority was never entitled to enter in November 2006 into an agreement involving himself and financier Derek Quinlan related to development of the site.
The authority was unable to perform its obligations under that IGB agreement and had therefore frustrated the ability of Mr McNamara and others to develop the site, meaning very substantial losses for them, it is alleged.
Mr McNamara said he faced potential claims totalling more than €108 million on foot of loans raised from Anglo Irish Bank and private investors with Davy Property Holdings Ltd and also on foot of personal guarantees given by him over those loans.
The proceedings by Mr McNamara, Ailesbury Road, Ballsbridge, Dublin, and his company Donatex Ltd, Pembroke Road, Ballsbridge, against the docklands authority were before Mr Justice Kelly yesterday to deal with legal issues relating to issues of discovery.
