An American widow has brought a legal action alleging she is the beneficial owner of a bedroom suite, valued at $450,000 (€318,552), in Ashford Castle in Cong, Co Mayo. The action could have implications for the €56 million sale of the castle, agreed last August but not yet finalised.
The sale agreement between the owners of the hotel, a number of American investors, and the buyer, Galway businessman Gerry Barrett, gives the buyer an option not to complete the sale if Kathleen Connor's claims are not disposed of by May 31st next.
The proceedings by Ms Connor, who says she and her late husband John were prominent members of the Irish/American business community in New York, were yesterday admitted to the list of the Commercial Court, the commercial division of the High Court, by Mr Justice Peter Kelly.
The action is against Ashford Castle Holdings Ltd, Ashford Castle Owners Association Inc and Ashford Castle Rental Pool Inc.
Ms Connor claims she and her late husband became aware in 1985 of an opportunity to invest in the purchase of Ashford Castle.
She and her husband subsequently agreed to invest in three units in the castle and also invested in a similar scheme relating to Dromoland Castle. They had also introduced numerous potential investors to Downar Securities Inc, she said.
In consideration for procuring some 12 investors, she said William Dowling, acting for and on behalf of Downar and Ashford Castle Inc, had agreed to transfer a further castle unit - Unit 330 with an approximate area of 328 square feet - to herself and her husband. After her husband's death in 2002, all of the units were placed in her name, she claims.
However, in 2003, the defendants told her they could find no paperwork identifying either herself or her husband as the owner of Unit 330. In September 2005, Ashford Castle Owners Association Inc wrote contending she was not the owner of Unit 330.
The defendants were now threatening to sell Ashford Castle in complete denial of her beneficial interest and title, she claims.
The defendants have denied the claims and have pleaded they are unaware of any arrangement between Ms Connor and Downar and are not bound by any such arrangement. It is also claimed that, in a 1995 settlement of proceedings brought by a man who claimed beneficial ownership of Unit 330, an agreement was reached under which Unit 330 was repurchased by Ashford Castle Owners Association from that man.
