The Criminal Assets Bureau has withdrawn its action seeking to have Jackson Way Properties Ltd, a company of businessman Jim Kennedy, pay the State any monies equivalent to alleged corrupt enrichment of the company following rezoning of certain lands at Carrickmines.
A separate case in which JWPL is claiming substantial damages against CAB over losses allegedly suffered after the Bureau got a court order in 2006 freezing part of the lands will be mentioned next Monday with a view to getting a hearing date.
Mr Kennedy and members of his family were in court today when Sean Gillane SC, for CAB, indicated that, due to unavailability of a witness, it was not proceeding with its case for an order directing JWPL pay the Minister for Finance any sum the court might decide equated to corrupt enrichment of the company.
Counsel asked the court to make, on consent, an order striking out the proceedings plus various other orders, including one lifting Mr Kennedy’s undertaking, given in 2010, concerning dealings with a €13 million compensation sum payable to JWPL due to some of the Carrickmines lands being compulsorily purchased.
Martin Hayden SC, for JWPL, said he understood the case was being withdrawn with previous costs orders to be vacated. The withdrawal of CAB’s case was without prejudice to JWPL’s entitlement to proceed with his damages claim, counsel noted.
The President of the High Court, Mr Justice Nicholas Kearns, made the orders sought.
In its forthcoming action, JWPL, of which Mr Kennedy is a director, claims CAB wrongfully obtained a freezing order on 17.6 acres in Carrickmines in 2006. The company claims the order breached its rights under the Constitution and European Convention on Human Rights and it has suffered loss and damage.
The CAB proceedings previously opened in 2010 before the late Mr Justice Kevin Feeney but were put on hold when Mr Kennedy was arrested that same day and later charged with bribing councillors for rezoning votes.
His criminal trial on those charges, along with that of a number of county councillors, went ahead last July but was halted on its 13th day when the chief prosecution witness Frank Dunlop became seriously ill. The charges against Mr Kennedy and the councillors were withdrawn by the State.
Meanwhile, in March 2011, JWPL brought its proceedings seeking damages allegedly suffered by it due to the freezing order on part of the Carrickmines lands.
JWPL argued CAB knew, or ought to have known when seeking the freezing order in July 2006, the bureau could not make or maintain any claim for a freezing order in relation to a 17.6-acre parcel of the total 108 acres owned by JWPL in Carrickmines. CAB contended the rezoning of the 17.6 acres from agricultural to industrial use in July 1998 was secured by corruption.
The 108 acres in Carrickmines was divided into four parcels, including the 17.6 acres, to the north-east and south-east of the M50 motorway. One of the plots, 68 acres, was the subject of a failed rezoning motion and remains agricultural. Another 20 acre plot was compulsorily purchased from JWPL by the local council to provide land for the motorway.
JWPL was awarded almost €13 million compensation for the compulsory purchase but this has not yet been paid because in November 2010 the High Court varied the freezing order on the Carrickmines lands so it would only apply to the 17.6 acres. Mr Kennedy gave undertakings in November 2010 in relation to the €13 million award which, the High Court previously noted, was an effective security swap between CAB and JWPL pending the outcome of the proceedings.
CAB claims JWPL’s proceedings are misconceived and/or frivolous or vexatious, disclose no reasonable cause of action and constitute an abuse of process.
