Hot Press editor in legal row over Hall of Fame losses
The case is centred on a liability of €1.5m in losses, allegedly incurred by the company that ran the Hot Press Music Hall of Fame in Dublin.
The action by Mr Stokes and his wife Máirín Sheehy, of Trinity Street, Dublin, is against John MacColgan and Moya Doherty, Louth man Cyril O’Brien, Tony Burke of Lambourne Wood, Cabinteely, Dublin, and Denis Desmond of Strand Road, Killiney.
Mr Stokes and Ms Sheehy were the sole directors of Steeple Investments Ltd of James Place East, Dublin, and claim they were engaged from 1998 in a business venture with Mr O’Brien and Mr Burke to obtain investment in Steeple through a business expansion scheme (BES), in order to develop the Hall of Fame museum.
It is claimed that Mr O’Brien and Mr Burke agreed to indemnify Mr Stokes and Ms Sheehy against two-thirds of any liabilities, costs or losses arising from the venture.
It is furthermore claimed that Denis Desmond, Mr McColgan and Ms Doherty — who subsequently joined the venture — also agreed to indemnify Mr Stokes and Ms Sheehy.
It is argued that Mr O’Brien, Mr Burke and Mr Desmond are liable for the bulk of the alleged losses, while Mr McColgan and Ms Doherty are liable for more than €158,000.
The defendants deny there was the loss or damage alleged. Mr McColgan and Ms Doherty deny they agreed to indemnify Mr Stokes and Ms Sheehy against losses.
Hugh Mohan SC, for Mr Stokes and Ms Sheehy, said Mr Stokes developed the idea and approached Cyril O’Brien about a premises in Middle Abbey St.
Mr O’Brien and Mr Stokes were then introduced to promoter Tony Burke and a company, Artwave, was set up, using the BES scheme, to run the museum, venue, restaurant and bar.
Finance was put in place in 1998 and Denis Desmond agreed to join the project on March 17, 1999.
The Hall of Fame opened in May 1999, but, according to Mr Mohan, “the numbers were not there”, and, “a number of personality issues... started to surface”.
Mr O’Brien exited in September 1999, but there was no mention of him exiting the indemnity arrangement, said Mr Mohan.
In 2000, John McColgan and Moya Doherty of Riverdance fame, who knew Niall Stokes, became 20% shareholders.
At a meeting in February 2001, it became clear that Mr Desmond wanted to take over the operation and change it.
Mr Stokes was offered a total of IR£800,000 (€1m) for his shares. It was proposed that Mr Desmond would own 85% of the new company and McColgan and Doherty 15%, said Mr Mohan.
According to Mr Stokes’s legal representative, Mr Desmond took over the running of the premises in March 2001, but the Hall of Fame ceased trading in September of that year.
The case continues today.
