Publicans go ahead with demolition works at hotel development

PUBLICANS Hugh O’Regan and Paraic Dunning are to go ahead with development works on their €16m extension to the Morrison Hotel on Ormond Quay, Dublin, following a decision of the High Court yesterday.

Demolition works on the site had been stopped by consent after next door neighbour and insurance broker Stephen Faughnan sought injunctions restraining the businessmen interfering with his four-storey Georgian listed building at 11 Ormond Quay.

Colm Allen SC, counsel for Faughnan and S A Faughnan (Brokers) Ltd, told Mr Justice Eamon de Valera a full hearing of his application for an injunction restraining demolition works could continue into a second day.

His client was willing to have all existing undertakings not to proceed with demolition works discharged and to install constant monitoring of the demolition to keep check on its effect on his property.

Mr Mark Sanfey, counsel for O’Regan and Dunning, said the works consisted of a €16m development of the Morrison Hotel Phase 2 and a €6.3 million tax allowance would occur if the project was completed by the end of next year.

He said suspension of demolition had to date cost his clients €67,400 and would rise at the rate of €14,500 a week if continued.

Mr Sanfey said the proposal to the court, conceding that he did not wish to go ahead with his application for injunctive relief, represented an abject climbdown by Mr Faughnan and his company. “As far as my clients are concerned they have been needlessly caused to incur at least more than €80,000 losses,” he said.

Mr Sanfey said the plaintiff was prepared to let his clients do what he was not prepared to let them do two weeks ago and asked that the motion for injunctive relief be struck out with costs against Mr Faughnan.

Tom Mallon, counsel for John Paul Construction, said one of the allegations made by Mr Faughnan was that his computer system had gone down because of vibrations caused to his property and had claimed for “repairs” totalling €7,500. Invoices proffered, however, were in relation to new computers.

Mr Mallon said Mr Faughnan had also alleged his sewers had been damaged but four of five invoices for repair work pre-dated his client’s entry on to the site.

He said if Mr Faughnan was abandoning his application for an injunction, John Paul Construction would be seeking an early date to bring the matter to trial and recover their costs.

Mr Justice de Valera adjourned the application until the new law term in October.

And gave Mr Faughnan liberty to apply to the court in the meantime should he experience any difficulties. He reserved the question of costs to the trial judge of the action.