Attorney General to study judgement against council
The council has been found to have wrongly fired Uniform Construction from the Limerick Main Drainage Scheme in 2001.
Speaking in Limerick, FInance Minister Brian Cowen said it was a matter for the Minister for the Environment and the local authority.
But from his point of view, he said he would like to hear the Attorney General’s view about the implications of the court judgement and where the liability lies and to see how the matter can proceed.
Chairman of the Public Accounts Committee, Michael Noonan TD, said the Exchequer may have to step in to save Limerick City Council and the services it provides.
In a 42-page judgement, Mr Justice Clarke refused to interfere with a decision by a conciliator and an arbitrator who both found that the council wrongly fired Uniform Construction from the €240m Main Drainage scheme four years ago.
The company had won a contract worth €9.5m in 2000 for work which involved tunnelling.
Uniform Construction said they were not given sufficient information about rock formations it encountered.
The council fired the company saying they were behind time and over budget. The council then paid another contractor about €20m to complete the work.
Uniform Construction appealed the council decision to sack them and won at both conciliation and arbitration level.
The conciliator awarded the company €25m damages.
The arbitrator, whose findings are binding on both parties, upheld the decision, but has not yet specified the amount of damages.
Since being removed from the scheme, Uniform Construction have been precluded from tendering for any public schemes.
As a result, the company may have lost tens of millions of euro, according to industry sources.
Limerick City Council decided to fight the binding arbitrators ruling in the High Court on points of law, but the case was thrown out last week.
Limerick City Manager, Tom Mackey, said yesterday said they have yet to get a transcript of the judgement.
He said another High Court action has still to be heard as that was deferred pending the outcome of the case ruled on last week.
He said going to the Supreme court is always an option.
Mr Mackey said: “We need to talk to our legal advisers and the department before we can give informed comment.”
