Man appeals order to pay €128,000 damages to builder

A MAN has appealed a ruling that he must pay €128,000 in damages to a construction firm after he failed to complete the purchase of a €290,000 penthouse apartment.

At Ennis Circuit Court last month, Judge James O’Donohoe ordered Brian P Smyth of Clonmaskill, Devlin, Co Westmeath, to pay the €128,000 in damages over not proceeding with the purchase of the apartment in Shannon, Co Clare, from Paddy Burke (Builders) Ltd.

In the court, auctioneer Rory Fitzpatrick said the current market value of the three-bed apartment was €125,000.

Mr Smyth paid a deposit of €29,000 on the property and will forfeit that.

Even after paying €128,000 in damages to the firm, Mr Smyth will not take possession of it and the property will remain in the possession of receiver of Paddy Burke (Builders) Ltd, Eoin Ryan of Howarth Bastow Charleton. Mr Ryan was appointed receiver of the long-established firm by the National Assets Management Agency in December.

Yesterday, the Ennis Circuit Court office confirmed Mr Smyth has appealed the ruling.

As a result, a stay has been put on the order. The appeal case is due to come before the High Court in Ennis later in the year.

Paddy Burke (Builders) Ltd brought the action against Mr Smyth after failing to proceed with the agreed February 2007 purchase of the apartment in Block J at Bru na Sionna, Shannon, Co Clare.

The builder stated the company completed the construction of the apartment and Mr Smyth failed to complete the sale.

Mr Smyth lodged a counter-claim. However, this was dismissed by Judge O’Donohoe.

Judge O’Donohoe gave his judgment in the action in December and last month calculated the scale of damages to be made based on the current value of the apartment.

Judge O’Donohoe described the price drop as shocking. “It is more than the national average — I am stunned by the great value that you would get for this penthouse apartment.”

But Mr Fitzpatrick said: “There is very little activity. There is no hope of funding. The banks aren’t lending.”

Lorcan Connolly, counsel for the builder, also provided a second valuation to the court with Sherry Fitzgerald McMahon, stating that its market value is €140,000 and Mr Fitzpatrick said this would be at the upper end of its worth.

Judge O’Donohoe said he was in the unenviable position of not being able to compare the value of the apartment to another in Shannon, but said that he would adopt the value of €140,000.

Judge O’Donohoe said that Paddy Burke (Builders) is entitled to €128,000 in damages and also ruled that Mr Smyth must pay the builder’s legal costs.