Dunne and Warren in settlement discussions

Property developer Sean Dunne and investment adviser Kevin Warren were understood last night be discussing a possible settlement of the High Court action brought by Mr Dunne over the purported sale of his share in a Kildare shopping centre to Mr Warren.

The hearing, which began last week, was adjourned yesterday to allow lawyers for both sides to discuss the case.

It is due to begin again this morning at 11am, by which time some believe a settlement may have been reached.

If the two parties do not manage to reach an arrangement that suits both sides, the action could run well into next week at least.

When the hearing resumed on its sixth day yesterday, Paul Gallagher SC, for Mr Dunne, asked for an adjournment. While both parties had already agreed on a number of issues, he believed further discussions could "narrow" the legal issues further, counsel said.

Ms Justice Mary Finlay Geoghegan said this was a case with very complex legal issues and it was in the interest of the overall management of the case if the parties could agree on the issues. She adjourned the hearing until today.

Mr Dunne, of Merrion Square, Dublin, claims the purported sale of his stake on July 21st, 2005, to Mr Warren, of Northumberland Road, Dublin, is in breach of an agreement that the sale would not be completed until a development agreement had been executed by both parties.

Mr Dunne claims it was understood by both parties that the €37.5 million figure was only part of an overall figure to be agreed under a development agreement to be negotiated by the two sides.

The developer, who last year purchased two sites from Jurys Doyle and more recently agreed to buy a portion of AIB's headquarters at Ballsbridge in Dublin, is seeking a declaration from the court that no binding agreement was reached between himself and Mr Warren for the sale of his 50 per cent stake.

The Whitewater centre opened for business last month. Mr Dunne's share in the development is estimated to be worth at least €200 million.

Mr Warren has denied Mr Dunne's claims and claims Mr Dunne agreed to sell his stake for €37.5 million and that a €100 deposit paid on August 31st 2005 secured the deal.

Mr Warren also claims there is a binding contract between Mr Dunne and Mr Warren for the sale of the former's stake, which alleged contract was agreed in a written memorandum of agreement made on July 21st, 2005. He contends Mr Dunne has refused to complete the sale and is acting in breach of contract.

Yesterday's adjournment came as Mr Dunne's case was drawing to a close and lawyers for Mr Warren were due to commence their arguments.

The court has heard Mr Dunne was the owner of 50 per cent of lands at Moorfield and Kilbelin in Newbridge, Co Kildare, where the Whitewater centre is now situated. Fellow property developer Sean Mulryan is the owner of the other 50 per cent interest.