Landowner seeks to have costs order imposed on O'Brien

Lawyers for the head of the O'Brien clan, who this week secured judgment for €7.9m against a company controlled by businessman Denis O'Brien which reneged on a land deal, are now seeking to have the well known entrepreneur and other directors of the company made personally liable for the costs of the action.

The costs of the action are understood to be in the region of €250,000.

On Tuesday at the High Court, Ms Justice Mary Finlay Geoghegan said she was satisfied to award damages to the 18th Baron Inchiquin Conor Myles John O'Brien, Thomond House, Dromoland, against Trinity Property Holdings Ltd over its repudiation of an agreement for the sale of 377 acres at Dromoland estate in Co Clare. The lands are separate to Dromoland Castle which is on adjoining lands.

The case arose from a proposal, following alleged talks in 2006 between Denis O'Brien and Lord Inchiquin, that TPH would buy some 377 acres out of the 600 acre estate with a view to developing a five-star hotel, convention centre, golf course and club and five star housing on the lands.

Today the judge granted Lord Inchiquin liberty to bring a motion to have Denis O'Brien, as well as the directors of TPH Mr Kieran Walshe, John Ryall, David Sykes and Michael McNally, liable for the costs of the action. The motion, the judge added, is to be served in the next seven days.

Making the application John Gleeson SC for the landowner said that the application to have the five individuals made liable for the costs of the case was being made as a result of TPH's decision of April 8 last to wind up the company.

While TPH did not contest the last court case, counsel said the case had been fully defended until earlier this week. TPH had made a counterclaim containing allegations against Lord Inchiquin that were "manifestly untrue". Counsel added that no explanation had been given to the court why the company had decided to go into voluntary liquidation

Counsel said that in light of what he said was a "cynical manoeuvre" to go into liquidation the €7.9m ruling against the company was in effect "a paper judgment". His client, counsel added, had been "left high and dry."

Counsel said that they are also seeking to have costs against TPH made on a solicitor-client basis which is the highest level of costs that can be awarded.

Mr Gleeson also said the that lawyers acting for TPH have stated, in correspondence to his client's solicitors, that "they (TPH's lawyers) do not believe there is any basis for having Mr O'Brien and the company directors made liable for the costs of the action".

The court also heard from lawyers for TPH, who were present in court yesterday, that Denis O'Brien is neither a director nor a shareholder of TPH. However, Mr Gleeson told the court that a firm that has a 65% shareholding in TPH is in the beneficial ownership by Mr O'Brien.

The judge adjourned the matter to a date later this month.