Killilea firm ends legal action with hotel operator

A private construction company owned by businessman Sean Dunne’s wife, Gayle Killilea, has settled its High Court action over an alleged failure to pay it €2.5m for remedial works to two flooded Dublin 4 hotels.

Mavior, an unlimited company of which Ms Killilea is the sole beneficial shareholder, claimed the banking syndicate owed it €2.5m which the company spent repairing the Tower and Ballsbridge Inn Hotels following flood damage in Oct 2011. The hotels were run by another company called MJBCH which was controlled by her husband, Mr Dunne.

Mavior claimed breach of contract by Zrko Ltd, a company set up by Ulster Bank, ACC, and Icelandic bank Kaupthing, to represent their legal and beneficial interest in the hotels. Mavior also claimed it was unlawfully excluded by Zrko from the hotels in March 2012 and was entitled to what it had spent on works up to that date.

Zrko had denied there was any contract and Mavior therefore had no entitlement to sue for alleged breach.

Following talks yesterday, Jim O’Callaghan SC, for Mavior, said the matter had been resolved and the only orders required were that a lodgement in court previously made by Zrko could be paid out in part satisfaction of Mavior’s claim. Interest earned on the lodgment could go to Zrko and previous costs orders could be vacated with the case put in for mention again on Nov 6, counsel said.

About a month after the flooding, Mavior entered a contract with MJBCH, on behalf of Zrko as the insured party for the hotels, and it was Mavior’s case that, at all times, MJBCH was acting as an agent for Zrko, counsel said.