A HIGH Court judge has warned he may have to abort legal proceedings brought over an alleged land deal “scam” in Co Offaly, allegedly promoted by former Fianna Fáil councillor Gerard Killally.
Mr Justice Michael Peart said yesterday there seemed to be a “question mark” over something that had occurred during evidence but he did not know what it was and, if not informed sufficiently to remove any doubts he had, the trial may have to be aborted.
He made the remarks when agreeing to a final adjournment of the action by several investors against Mr Killally and others, including a firm of solicitors, arising from the 2007 deal concerning lands at Mount Lucas, Daingean, Co Offaly.
The investors claim the lands were sold for €10.6 million to them in May 2007 when, on the same day but unknown to them, Mr Killally had bought the lands for €4.7 million. They allege Mr Killally made secret profits from the sale.
They have also sued John Bourke and Francis O’Doherty, practising as Bourke Co, Drimnagh Road, Walkinstown, Dublin, and various other alleged advisers claiming negligence and breach of duty. No defence has been entered on behalf of Mr Killally, a bankrupt, while the other defendants have denied the claims.
The case opened in January and evidence concluded last month when solicitors Crowley Millar and counsel for Bourke Co asked permission to cease representing their clients due to “difficulties” on instructions. Issues were raised on whether Royal Sun Alliance (RSA), insurers of the defendant solicitors, would continue to indemnify them in the case.
These matters were described as “serious” by Mr Justice Peart, who granted an adjournment sought by another solicitor appearing in a personal capacity for the defendant solicitors after being told adjournment might assist all sides.
When the case returned before Mr Justice Peart yesterday, Ronan Murphy, for the investors, said the court was due to deal with the case itself and the Crowley Millar application was to come off record. The investors also wanted to join RSA to the case for the purpose of seeking costs against it, but wanted that matter addressed after judgment was given.
Denis McDonald, for RSA, said it did not want to get involved in the controversy before the court and would oppose being joined to the case. Mr Justice Peart said he would address the matter “if” judgment was given. Declan Doyle, for Bourke & Co, wanted time for talks with the parties. He said he wanted to protect the defendant solicitors’ interests in relation to the Crowley Millar application and indemnification by RSA.
Mr Doyle said he wanted time before things were potentially said in court that could be damaging to the trial and the parties.
After some talks between the sides, Mr Doyle said he believed a three-week adjournment would be constructive. Mark Connaughton, instructed by Crowley Millar, supported this while Mr Murphy asked that any adjournment should not exceed one week.
Mr Justice Peart said he would adjourn for three weeks but on a peremptory basis. A time must come when the case either goes on or not, he stressed.
