Company seeks €346k for services allegedly provided to find hospital site in Cork for firm

LEGAL proceedings have begun in the High Court in which Investor First Limited is seeking €346,275 in respect of professional services allegedly provided in sourcing and securing a building in Cork suitable for use as a private hospital which the defendant Sheehan Medical Limited could purchase or lease.

Sheehan Medical deny the claims and the case came before Ms Justice Maureen Clark yesterday by way of a motion for discovery.

The judge allowed eight weeks for the relevant documentation to be supplied to Investor.

Investor First is a limited liability company with registered offices at Homestead, Sandyford Road, Dublin, and provides investment advice along with negotiating investment opportunities on behalf of clients.

Sheehan Medical Limited is a limited company with registered office at Burlington Road, Dublin 4, and is also seeking damages for breach of contract.

In a statement of claim, Investor First allege that in March 2008 and up until July 2009, Sheehan Medical retained their services to assist in a number of development projects. As part of the business relationship, the defendant requested Investor to source a building in Cork suitable for use as a private hospital and to come up with a financial structure around the purchase/lease and at the same time raise finance for the property element of any such deal.

Investor allege it was subsequently agreed between the parties they would be paid a commission of 3% plus VAT by Sheehan Medical if any third parties introduced to the defendant by Investor ultimately invested in the company incorporated by the defendant to run the private hospital in Cork.

Investor allege that in breach of the agreement, the defendant on or about March 26, 2009, commenced dealing directly with the developer of the building in Cork and concluded a contract with the developer concerned for a lease of the building sourced by Investor for Sheehan Medical.

Talks subsequently took place between the parties and on April 28, 2009, agreement was allegedly reached under which Sheehan Medical agreed to pay Investor a sum of €285,000 plus VAT (€346,275) in respect of the professional services provided.

However subsequently, Sheehan Medical allegedly reneged on the agreement and sought to claim they were not bound by the agreement because of what it alleged were the plaintiff’s misrepresentations, lack of good faith and deceit in its dealings with the defendant.

In pointing out that she had read the papers in the case, Ms Justice Clark said it seemed to her it was a case crying out for some kind of mediation order.

Eamon Murray, counsel for Investor, said he agreed that the case should not have taken this long to resolve.

The case was put in for mention only on December 21 next.