Covert contract alleged in docklands case

THE SPENCER Dock Development Company has claimed that an alleged “covert contract” between the Dublin Docklands Development Authority and a rival property company, North Quay Investments Ltd, relating to a proposed €200 million development on Dublin’s north quays, is “legally tainted” and has created an uneven playing pitch among developers in the docklands.

The dock development company, which controls extensive development lands over 29 acres at Spencer Dock, Dublin, claims the docklands authority “seriously compromised itself” in relation to alleged commitments to North Quay under the agreement and had given it “a considerable commercial advantage”.

The authority may be liable for millions of euros in losses to the dock development company as a result of the agreement as North Quay had effectively secured a “rewriting of the planning scheme” to ensure “the maximum benefit” for the lands owned by North Quay, the development company claims.

The effect of the agreement is that there is “no longer a level playing pitch” between developers operating in the Dublin docklands development area, it alleges.

The company says North Quay has secured a major advantage over other developers in the docklands and that the scale of the developments involved is huge, with a recent development at Spencer Dock being valued at approximately €275 million.

It also claims it only learned of the alleged covert agreement between the docklands development authority and North Quay as a result of separate legal proceedings between North Quay, property developer Seán Dunne and the authority.

Judgment is awaited in those separate proceedings in which Mr Dunne has challenged a decision by the docklands authority that the proposed North Quay development, which surrounds on three sides development lands owned by Mr Dunne, is exempted development not requiring planning permission.

Mr Dunne has claimed the development is unauthorised and that a certificate of exempted development issued by the docklands authority for it is invalid and does not comply with the objective of the Docklands North Lotts planning scheme.

The Spencer Dock Development Company has brought its action against the docklands development authority and the Minister for the Environment, Heritage and Local Government, with North Quay as a notice party.

Mr Justice Peter Kelly admitted the case to the Commercial Court yesterday. While the other parties did not object to the case being transferred to the Commercial Court, Emily Egan, for the authority, said there was an element of overlap between the issues in this case and the other case.

In its action, the development company is seeking leave to challenge the decision of the docklands authority of May 31st, 2007, to enter into an agreement with North Quay Investments related to the lands owned by North Quay.

The authority is responsible for preparing planning schemes for the docklands area and had “seriously compromised” itself in the exercise of its statutory powers.