A BITTER legal battle between Treasury Holdings and businessman Harry Crosbie over his liability for part of a €20 million debt of their Spencer Dock joint venture development company was adjourned for talks yesterday shortly after a judge said “squaring up” to each other in court seemed “a curious way” of ensuring future good relations.
Richard Barrett and John Ronan of Treasury, as well as Mr Crosbie, were in the Commercial Court when Mr Justice Peter Kelly made the comment just hours after their action opened. All three developers are scheduled to give evidence if the case is not settled.
In opening the case, Brian O’Moore SC, for Treasury, said it arose from “one undisputed fact – the inability of Mr Crosbie to meet debts due by him and acknowledged by him”.
As the case broke for lunch, the judge asked whether the sides were still in business together. On being told the shareholding in the Spencer Dock venture remains the same, the judge made his comment about squaring up in court.
When the case was due to resume at 2pm, Mr O’Moore told the judge his remarks had had an effect and both sides sought time for talks. The case, listed for four days, was adjourned to today.
Earlier, the judge remarked the legal documents grounding the alleged agreements between the sides were “not a thing of beauty” and were unclear.
Treasury wants orders to compel Mr Crosbie to pay his alleged €6.5 million share of a €20 million debt due to another company under agreements for the financing of Spencer Dock Development Company (SDDC).
The court was told the Spencer Dock joint venture involved Treasury and Mr Crosbie agreeing to contribute two-thirds and one-third respectively of additional costs incurred for the development. Treasury agrees some monies – about €1.4 million – are due to Mr Crosbie under other Spencer Dock agreements, making his total alleged liability now about €3.9 million, with that liability allegedly rising to €4.78 million by November 2010.
Mr Crosbie denies liability and has counter-claimed for some €10 million from Treasury arising from various agreements related to development in the docklands. He claims he is entitled to repayment of some €8 million plus interest of about €2 million because of alleged default of the “Campshires Agreement” relating to Mr Crosbie’s agreement to sell his interest in lands at the docks known as the Campshires.
In its defence to that counter-claim, Treasury claims Mr Crosbie is not entitled to repayments until Spencer Dock could make those and only after Anglo-Irish Bank was repaid its loans.
Treasury claims, in the face of a winding up petition served on it last December, it had to pay €9 million that month to finance company Streamford Ltd, a subsidiary of Mercury Engineering Ltd, as part-payment of a 2004 loan made to the Spencer Dock company. Since then, it has paid an additional €10.4 million to Streamford with the final payment due on November 30th.
Treasury also claims it, Mr Crosbie, SDDC and Folly Ford Ltd had agreed indemnity and contribution agreements in October 2004. Mr Crosbie, it is alleged, also agreed at a meeting on November 10th, 2008, with Mr Barrett and Mr Ronan that a settlement should be entered into concerning repayment of the Mercury facility. Mr Crosbie allegedly agreed to pay a contribution in January 2009 when his cashflow would be “okay” and, on foot of that, Treasury reached its instalments agreement with Streamford. But when Mr Crosbie was called upon to make his contribution he had refused to do so. His reasons for refusing were “contrived”, Treasury claims.
