Talks continue to resolve nursing home case

Efforts are continuing to resolve legal proceedings arising from the involvement of Health Minister James Reilly and others in the purchase of a nursing home in Co Tipperary.

Arising from a €1.9m judgment entered last year against Dr Reilly and others, attempts are being made to secure agreement for the sale of the Greenhills nursing home, a development which could lead to that judgment being discharged. Those and other proceedings were mentioned briefly yesterday before Mr Justice Brian McGovern who agreed to adjourn them to facilitate the settlement efforts.

In Feb 2012, judgment for €1.9m was entered at the Commercial Court on consent against Dr Reilly, Rush, Co Dublin, Paul Kelly, Mountjoy Square, Dublin; Dilip Jondhale, Kilkenny; Ciaran Flanagan, Inchicore Terrace South, Dublin 8; and Anne Devitt, Swords, Co Dublin, jointly and severally under a settlement of proceedings over an alleged contract to buy the home. The five also consented to indemnify the plaintiffs concerning any liability to Bank of Ireland under a co-ownership agreement relating to the nursing home.

The plaintiffs were Michele Mellotte, Tullamore, Co Offaly; Orla Higgins, Ranelagh, Dublin; John Caulfield, Clontarf, Dublin; John McGreevy, Clontarf; John Whately, Dundalk, Co Louth; Garry Smyth, Dundrum, Dublin; Tom Murphy, Oldtown, Co Dublin; and Michael Morris, Celbridge, Co Kildare.

The case centred on alleged default of an agreement of Nov 2000 under which, it was alleged, Dr Reilly and the four others sued were to buy the nursing home for €1.95m and secure the release of the plaintiffs from all liabilities to Bank of Ireland concerning the property. The nursing home was a commercial success and valuable business asset, the court was told.

Mr Justice McGovern said he would adjourn the matter to Nov 13.