Row over €8m property profits settled out of court

A legal dispute over the entitlement of an €8m share of the profits of a substantial property development company has been settled, the High Court was told yesterday.

The action brought by Colm Lundy against Newlyn Development Ltd and two directors of that company - Robert Kehoe, of Oakley Road, Ranelagh, Dublin, and George McGarry, Sandcroft Lodge, Royal Marine Park, Bray, Co Wicklow.

Mr Lundy, of Valentia Road, Drumcondra, claimed specific performance on a profit share agreement which he alleges was made between him and Newlyn, of Bluebell Business Centre, Old Naas Road, Dublin, on October 15, 2004.

He had claimed that, under that agreement, he was entitled to receive 10% of the net profits of the company or its subsidiaries, to include all future projects, from October 15, 2004.

Today counsel for Mr Lundy, Brian O'Moore SC, told Mr Justice Peter Charleton that the parties had reached a settlement in the matter. Mr Tom Mallon BL for the defendants said that his clients were consenting to the settlement.

In the action, Mr Lundy claimed that, under the agreement of October 15th 2004, he was employed on an annual salary of €222,000 by Newlyn and it was also agreed he would receive 10% of the net profits of its projects.

Newlyn had developed a large number of projects including at Carrickmines, Rathfarnham, Coolock and Montague Lane in Dublin; at Kilpeddar and Blessington, Co Wicklow; and an office block in Brussels.