Advisory firm sues Sheehan Medical for more than €500,000
In the High Court on Monday, solicitors acting for Investor First, an investment advisory firm based in Dublin, obtained a judgment against Sheehan Medical Limited for €526,350. Investor First, run by businessman James Carroll, claimed the money was owed for services provided in sourcing the building that housed the €90m Cork Medical Centre, which closed last month.
Mediation in the case had taken place on February 7 following which Sheehan Medical Ltd agreed to pay Investor First three instalments totalling €525,350, the first of which was due on March 31.
However, the payment was not received and Investor First on foot of the agreement, was entitled to get judgment for the amount of €526,350. Counsel for Sheehan Medical Ltd neither consented nor objected to the application.
On Monday, Ms Justice Maureen Clarke after hearing evidence on Investor First’s behalf, granted judgment to them in the amount of €526,350 and adjourned the matter to next Monday. Crowley Millar Solicitors, representing Investor First said they understood their client would be asking the court to assign a date for the hearing of Investor First’s petition to wind up Sheehan Medical Ltd.
Sheehan Medical Ltd was the company behind the setting up of the Cork Medical Centre (CMC). Its operating company CMC Medical Operations Ltd wrote to employees on March 28 informing them the company was insolvent.
According to court documents, Sheehan Medical Ltd, run by Dr Joe Sheehan, co-founder of the Blackrock Clinic, and his son James, hired Investor First in 2008 to work on a number of projects.
The following January, Sheehan Medical Ltd asked Investor First to locate a suitable building for a private hospital in Cork and to raise finance for the property deal, in return for a transaction fee.
The investment advisory firm located a premises in Mahon, built by developer John Cleary, and, with the agreement of Sheehan Medical Ltd, began talks with the developer.
Investor First claimed that, contrary to a clause in their agreement banning Sheehan Medical Ltd from dealing directly with the owner of any building that was the subject of negotiations, the company contacted the developer involved and agreed a deal for a lease. On Monday in the High Court that claim was vindicated.
