Dunne withdraws claim of payment to agents

DEVELOPER SEÁN Dunne has withdrawn claims that estate agents CBRE Richard Ellis received any payment from Irish Life in connection with Mr Dunne’s €130 million purchase in 2006 of Irish Life’s Hume House.

Irish Life lawyers described Mr Dunne’s conduct in the case as “despicable”. CBRE is suing Mr Dunne in proceedings due to open today over alleged unpaid fees of €1.5 million relating to the Hume House transaction.

Mr Dunne has counterclaimed for €35 million damages on grounds that, relying on advice from CBRE, he bought the property for €130 million when the nearest competing bid was €102 million and the true value of the premises was between €65 and €95 million.

In a letter read to the Commercial Court yesterday, lawyers for Irish Life said the company had been dragged into a dispute which did not concern it and allegations had been made by Mr Dunne implying Irish Life effectively entered into a bogus transaction as a device to pay CBRE €500,000.

The solicitors said Irish Life regarded the behaviour of Mr Dunne in the proceedings as “despicable” and warned that if any of his previous allegations were repeated outside court, they would bring High Court proceedings against him.

The claim in relation to an alleged payment from Irish Life was withdrawn by Donal O’Donnell SC, for Mr Dunne, during a costs application by Irish Life yesterday arising from applications by Mr Dunne for inspection of documents from the insurance company for his defence to the CBRE proceedings.

When Mr Dunne did not proceed with the inspection application, Irish Life sought costs arising from Mr Dunne’s conduct of the matter.

Mr O’Donnell argued that Irish Life had appeared in court unnecessarily as the motion was withdrawn and it was not entitled to costs.

Mr Justice Kelly said that given the turn of events, the claims made and now withdrawn, it was “not surprising” Irish Life had been represented in court. He directed that Irish Life was entitled to the costs of the application.

The hearing of the CBRE action is due to open today with the proceedings expected to focus mainly on Mr Dunne’s counter-claim against CBRE.

CBRE has denied Mr Dunne’s claims and alleges it expressly advised Mr Dunne that it could not justify significantly more than €65 million for the property. It also says there was no basis for Mr Dunne’s claim that it had received a fee from Irish Life over the Hume House deal.

CBRE Richard Ellis, with registered offices at Connaught House, Burlington Road, Dublin, claims €1.5 million is due to it in fees relating to a commercial property transaction of February 2006 involving the sale of premises known as Riverside IV at Sir John Rogerson’s Quay, Dublin, and the part exchange of that with Hume House at Pembroke Road.