Building firm to pursue €3m legal order over Whites hotel

A COMPANY associated with Whites Hotel in Wexford faces legal action to enforce a judgment for €3

A COMPANY associated with Whites Hotel in Wexford faces legal action to enforce a judgment for €3.29 million issued on August 1st last.

Cleary Doyle Contracting Ltd won the judgment against Balmaford Ltd in an uncontested case where the building company said it and 60 sub-contractors were owed the money. Yesterday, a spokeswoman said Cleary Doyle would be taking further legal action to have the money paid.

On Thursday night, representatives of the sub-contractors held a protest outside the hotel and further protests may be held.

"I just have a moral issue with the thing," the managing director of Winthrop Ltd, Barry English, said yesterday. "I just want the people to know." Winthrop is one of the sub-contractors involved.

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Balmaford Ltd entered into a contract with Cleary Doyle for the construction of the four-star hotel. The eventual construction cost was €40 million and work was completed in August 2006, Mr English said.

The hotel is operated by Whites Hotel Ltd, which has the same directors and shareholders as Balmaford. These are: Michael Burke, Strandside South, Dungarvan, Co Waterford; Liam Clancy, Finner, Bundoran, Co Donegal; and James White, Danby House, Ballyshannon, Co Donegal.

A group of investors put up a proportion of the development costs under a tax relief scheme and are to have their interest in the hotel purchased from them after seven years, Mr English said. A number of senior Irish business figures are involved.

In a statement, White's Hotel said: "Cleary Doyle, a multinational company with turnover in excess of €100 million, were the main contractor in the development of Whites of Wexford.

''This large development company was responsible for the employment of all sub-contractors on the development of this project. They were responsible for the employment and payment of each and every one of the sub-contractors. Cleary Doyle have received €37 million to date for this project."

The statement said there was no court order against "Whites of Wexford". It did not mention the order against Balmaford and, when asked about the matter, no further comment was available.

The statement added that Whites of Wexford "would hope that the grievances of these protesters could be dealt with in the correct forum".

Cleary Doyle, in a statement, said it and 60 sub-contractors are owed €3.291 million by Balmaford. It said several payments during the construction phase were "paid directly by Whites Hotel Ltd to both Cleary Doyle Contracting Ltd and the sub-contractors".

Colm Keena

Colm Keena

Colm Keena is an Irish Times journalist. He was previously legal-affairs correspondent and public-affairs correspondent