Paddy Teahon, the former chairman of the company that awarded the lease for the operation of the €62 million National Aquatic Centre to Dublin Waterworld Limited, consented to any funding arrangements for the centre provided they did not affect its operation, counsel for DWL told the High Court yesterday.
Campus Stadium Ireland Development Limited, which owns the NAC and which is now seeking forfeiture of the lease which it awarded to DWL in April 2003, was at all times fully aware of the funding arrangements and it was "quite extraordinary" that CSID was now telling the court it was not so aware until October 2004, Hugh O'Neill SC, said.
He said solicitors for DWL had written to CSID's solicitors in June 2003 stating that Dublin Waterworld Management Limited was in place and managing the NAC, counsel added.
It was "extraordinary" that there was a "bald assertion" by CSID that it did not know anything about DWML or Pat Mulcair, a Limerick businessman, until later, he said.
CSID has claimed it only learned this week that beneficial ownership of the lease for the NAC had been transferred to Mr Mulcair in April 2003.
It has also said Mr Teahon will deny claims that he was aware that DWL availed of services of Dublin Waterworld Management Limited in relation to management of the NAC.
CSID says it was unaware, when it granted the lease for the NAC to DWL on April 30th, 1993, that DWL had on the same day assigned beneficial ownership of the lease to Mr Mulcair who in turn, also that same day, entered into agreements with DWML that the latter would manage the centre on his behalf.
Mr Justice Paul Gilligan is hearing an application by CSID for possession of the NAC on grounds of what CSID has described as "complete" and "wilful" breaches of the lease by DWL and of various convenants under that, including covenants restraining assignment of DWL's interest in the lease to any other party.
The action opened on Tuesday and was listed to last three days. However, after being told that some 10 witnesses have yet to be called to give evidence, Mr Justice Gilligan said yesterday it was clear the action would not conclude by the end of this law term, which concludes today.
Denis McDonald SC, for CSID, said his client was anxious the action would continue into next week and conclude.
DWL was still notionally the tenant of the NAC and CSID had a real concern and anxiety about that.
Mr O'Neill said both he and junior counsel in the case had personal difficulties about sitting next week.
Mr Justice Gilligan said he would hear Mr O'Neill's outline of what he considered to be the main issues in the proceedings and would then adjourn to October 3rd the proceedings regarding whether the lease is forfeit. He will today hear an application by DWL to set aside a decision by an arbitrator of July 1st DWL is liable for €10 million VAT.
Mr O'Neill said he would be contending two documents - a declaration of trust (under which DWL assigned beneficial ownership of its interest in the lease to Mr Mulcair) and a management agreement (under which Mr Mulcair agreed that Dublin Waterworld Management Limited would manage the NAC) - constituted funding arrangements for the centre which DWL was entitled to enter into and which could only improve CSID's position.
There was an issue whether or not those arrangements were, without consent of CSID, a breach of the terms of the lease, counsel said.
There would be evidence that those arrangements were put in place before the lease was entered into by DWL on April 30th, 2003.
Mr O'Neill said he would be arguing the project agreement in relation to the centre was silent on whether the operator of the centre was entitled to assign its interest, and that DWL was therefore entitled to assign.
