Bitter battle ends as Master Meats case is struck out in High Court

A lengthy and bitter legal battle between Mr Pascal Phelan, founder of several Master Meats firms, and businessman Mr Larry Goodman, which dates back to the takeover of Master Meats by Mr Goodman in 1987, has ended in a consent settlement after more than 60 days hearing at the High Court. Legal costs incurred in the actions, initiated in 1988, could amount to several million euro.

But legal proceedings taken by Mr Phelan against Mr Zakaria el Taher, Mr Phelan's former partner in Master Meats, will continue. These also involve Mr Goodman since Mr Taher has claimed indemnity against Mr Goodman. Next Tuesday, lawyers for Mr Phelan will move an application for judgment - for an amount not yet specified to the court - against Mr Taher.

No details of the settlement of the various actions involving Mr Phelan, Mr Goodman, several Master Meats firms and others were given to Mr Justice Murphy yesterday. Neither Mr Goodman nor Mr Phelan, who both attended court, would comment on the settlement.

Mr Phelan said: "I'm delighted with the outcome and looking forward to getting back to my business." He said there was a lot of pressure with such a case and the time involved but, with yesterday's development, that was all forgotten. The case was "worth taking", he said. He added he was moving to Dublin and planned to spend more time with his family.

A simultaneous hearing of the four legal actions began last May and ran for 63 days until yesterday's surprise development which came after a week-long adjournment of the cases.

Just after noon yesterday, the judge was simply requested by Mr Brian O'Moore SC, for Mr Phelan, to make orders striking out the various actions as between all parties, except Mr Taher. The affected actions were taken by Mr Phelan against Mr Goodman; by Mr Phelan against Mastertrade (Exports) Limited and others; by Mastertrade Exports (Limited) and others against Mr Phelan and MasterCut Limited; and by Mr Phelan against Mr David Coyle and Mr Lawrence Crowley.

The judge was also asked to make an order striking out a motion brought by Mr Goodman's lawyers against Mr Phelan, due for hearing yesterday, which sought an injunction restraining Mr Phelan from interfering with witnesses.

Mr Justice Murphy made the orders sought and also made, despite protests by Mr Brian Dempsey SC, representing Mr Taher, an order for payment out of money lodged in court several years ago, plus interest. This money is believed to amount to several million euro.

Mr Taher was Mr Phelan's former partner in Master Meats. Mr Phelan will continue to pursue his action for damages against Mr Taher for alleged breach of contract and other matters. Mr Taher, who has denied any wrongdoing on his part but made allegations of wrongdoing against Mr Goodman, served a notice for indemnity against Mr Goodman.

The actions arose from what Mr Phelan contended was his enforced departure from Master Meats in 1987 and what was described to the court as the "engineered collapse" of the Master Meats group. In an action seeking some £30 million (€38.1 million) damages, Mr Phelan alleged there was a conspiracy between Mr Goodman, Mr Taher and others to secure his removal from Master Meats and to undermine the companies. It was alleged Mr Taher had secretly sold out Mr Phelan to his main competitor, Mr Goodman. Mr Taher has made various allegations against Mr Goodman, including a claim that he was simply acting on the instructions of Mr Goodman and was doing so reluctantly and under duress and threat of losing indemnities given to him by Mr Goodman in April 1987.

Mr Taher has claimed that, since 1987, Mr Goodman had betrayed him in relation to Master Meats and used him, with the assistance of leading professional firms and personnel in Ireland, to help manufacture a series of crises against the Master Meats group.

Mr Goodman has denied any wrongdoing and has made various claims against Mr Phelan. In the action by several Master Meats companies against Mr Phelan, the companies sought some £15 million, including interest, for alleged fraud, misappropriation and irregularities from the companies between 1985 and September 16th 1998, when Mr Phelan disposed of his shareholding in the companies. Mr Phelan denied the allegations.

In September 2000, Mr Goodman admitted for the purpose of the proceedings that he is and was at all material times the owner of Tarsos Anstalt. He admitted that on April 15th, 1987 he, through Tarsos Anstalt, acquired for $9.75 million (€11.2 million) 80 per cent of Master Meat Anstalt (by which Mr Taher held his interest in the Master Meats group). Mr Goodman also admitted the sale by Mr Taher of shares in Master Meat Anstalt to Tarsos Anstalt was, in legal terms, induced by Mr Goodman.

Last September, in a judgment on preliminary issues, Mr Justice Murphy found the 1987 acquisition by Mr Goodman breached an agreement between Mr Phelan and Mr Taher, reached in 1986, regarding several companies in the Master Meats group.