A son of billionaire bloodstock magnate John Magnier has told the High Court he handed two “brown” envelopes containing a total of €50,000 in cash to an estate agent involved in a failed €15 million property deal.
JP Magnier said the envelopes were to be delivered to the beneficiaries of the Barne Estate as a showing of “appreciation”.
In other evidence on Thursday, a solicitor involved in the proposed conveyance of Barne Estate, Co Tipperary, which is the subject of the legal action by John Magnier who alleges the €15 million deal was reneged upon by the vendors, told the court an agreement was in place between the parties before an exclusivity document was signed.
Joseph Fitzpatrick, of Smithwick Solicitiors, told counsel for the Barne Estate he secured an exclusivity agreement signed by both sides to run from August 31st to September 22nd, 2023, after hands were allegedly shaken on a deal.
Lawyers for Mr Magnier, founder of Coolmore Stud, have argued that a US-based construction magnate, Maurice Regan, the preferred buyer, engaged in a “full-frontal assault” on Mr Magnier’s claimed deal to buy the 751-acre estate.
Mr Magnier’s proceedings claim the Barne Estate owners reneged on the alleged deal, preferring to sell at the higher price of €22.25 million to Mr Regan, founder of the New York building firm JT Magen.
Mr Magnier – along with his adult children – wants to enforce the alleged deal which they say was struck at an August 22nd, 2023, meeting at Mr Magnier’s Coolmore home.
They claim the exclusivity agreement would not permit its representatives to solicit or encourage any expression of interest, inquiry or offer on the property from anyone other than Mr Magnier.
The Barne Estate has been held for the benefit of Richard Thomson-Moore and others by a Jersey trust. The Magnier side has sued the Barne Estate, Mr Thomson-Moore and three companies of IQEQ (Jersey) Ltd group, seeking to enforce the purported deal, which they say had been “unequivocally” agreed.
The Barne defendants say there was never any such agreement, as they needed the consent of the trustees to finalise any agreement and subsequently they preferred to sell the estate to Mr Regan, who is not a party to the case.
On Thursday, JP Magnier told Paul Gallagher SC, for the Magnier side, his father asked him to get €50,000 in cash on September 8th, 2023, and to put it into two envelopes to be given to the Thomson-Moores.
He said the money was an “appreciation” for letting the Magnier side on to the Barne land, for their loyalty in honouring the deal and because they were allegedly “cash strapped”.
JP Magnier said he put the money into two envelopes and gave it to the estate agent at Barne Estate for them to be passed on to the Thomson-Moores.
On September 11th, 2023, he said the estate agent met JP Magnier and “pushed” the envelopes in his direction, saying the Thomson-Moores were concerned their farm manager may have seen the original transaction.
Niall F Buckley SC, for the Barne side, asked what colour the envelopes were and was told they were brown.
Mr Buckley put to JP Magnier the envelopes were to keep the Thomson-Moores “sweet”, as John Magnier was concerned they were going to pull out of the deal.
JP Magnier said his father never said that to him.
“I take it you didn’t ask for a receipt?” asked Mr Buckley.
“No,” JP Magnier replied.
“Doesn’t that say it all,” Mr Buckley said. “Knowing what you did about my clients’ family circumstances and the need for them to provide for their child and given the vast amount of land you have, did it ever occur to you to let this one go?”
“It wouldn’t be my call,” said JP Magnier.
Mr Fitzpatrick told Martin Hayden SC, for the Barne Estate, the exclusivity agreement was not to further any negotiation but to keep the “status quo” of the alleged sale agreement in order to further the preparation and receipt of the contracts.
“Exclusivity was not for negotiations going forward but to facilitate the contract,” said Mr Fitzpatrick.
He said Mr Magnier had deposited €15 million in the Smithwicks’ client account before any purported contract was signed in order to “show good faith”.
However, he said that a week before the exclusivity agreement expired, the Thomson-Moores said they were taking tax advice.
“We invited them to a meeting and that was refused, then the extension of the exclusivity was refused. It was clear they had no intention of signing with us and were running down the clock,” said Mr Fitzpatrick.
The case continues in two weeks’ time before Mr Justice Max Barrett.
