A €20 million tourism project, backed by former Esat Digifone chief executive Mr Barry Maloney, his brothers and US venture capitalist Mr Bruce Dunleavy, is at the centre of a legal battle in which another investor, Mr Enda Hunston, claims his signature was forged on a key document.
Mr Maloney, his brothers Alan and Michael, and Mr Dunleavy deny forging Mr Hunston's signature. All five individuals are members of a consortium that is developing Mount Falcon Castle, Ballina, Co Mayo, at an estimated cost of €10-€20 million. The investors bought the property for €3.5 million in 2002.
But Mr Hunston, who is a tax adviser, is seeking to wind up the partnership and the project is the subject of a High Court case that is due to begin on February 24th.
The row blew up when Mr Hunston objected to the builder chosen for the hotel and leisure centre project after a formal tendering process, as he strongly favoured another developer.
He then sought an injunction preventing building work from going ahead and began proceedings to wind up the partnership.
The other investors accepted the injunction but placed him on notice for costs and damages should his action seeking to wind up the consortium fail.
Among other things, Mr Hunston is alleging that his signature was forged on one of the documents used to establish the agreement between the investors. It is understood that this paper details the procedures that should be followed in a dispute between the five men.
Its terms state that, in this situation, the property should be independently valued, and the individual or individuals in dispute should be bought out by the remaining investors at the market rate.
The investors established two limited companies, Mount Falcon Building and Mount Falcon Developments, to manage the project. Mr Hunston, Mr Alan Maloney and Mr Michael Maloney are listed as directors and shareholders of both.
The case is complicated by the fact that Mr Hunston is claiming that the arrangement between the investors is a partnership rather than a series of limited companies.
It is understood that he is basing this argument partly on the claim that his signature was forged. Partnerships are easier to wind up than limited companies, as they are effectively dissolved when one member pulls out.
At the same time, the other partners are counter-suing Mr Hunston for any losses arising from the delay in getting building work under way. This was originally scheduled to start in the first week in November. According to the High Court schedule, the case is likely to last six days.
Mr Barry Maloney is now a director of Benchmark Capital in London. Last year, he was involved in the successful Alphyra management buyout.
His brother, Mr John Maloney, was managing director of computer manufacturer Gateway Ireland. Mr Bruce Dunleavy is a director of Benchmark in the US.
Mr Hunston is a tax and financial planning adviser. He is managing director of Hunston Financial, based in Merrion Square, Dublin. He and his colleague, Ms Deirdre O'Farrell, are named as its directors. The company had net assets of €286,650 at the end of January 2002.
Mayo County Council granted Mount Falcon planning permission for a hotel, living accommodation and a leisure centre last September.
The property has fishing rights on 1.5 miles of the Moy, one of Europe's best salmon rivers. It is also close to loughs Conn and Cullen, which are popular with angling tourists for their brown trout fishing.
