€32.6m Waterford quays site row before court again

A dispute which has held up the €32.6 million sale of development land on the North Quays in Waterford for more than two years is again before the High Court.

The row involves Tarcel Ltd, which negotiated a contract for the sale of the lands in February 2005, the Port of Waterford Company and CIÉ, with much of the controversy centring on whether CIÉ owns or is entitled to access to the Pier Head road, which forms part of the North Quays.

Last May, Mr Justice Peter Kelly was told that proceedings against CIÉ brought by the port company were not going ahead because of an agreement with Tarcel over the right-of-way issue, the judge was told at the time.

Despite the agreement with Tarcel, the dispute relating to CIÉ's claims remains unresolved and two sets of proceedings have now been brought before the court.

Yesterday, after remarking that he was "all too familiar" with the case, Mr Justice Kelly listed proceedings by the port company against CIÉ in the Commercial Court list and directed that case should run in tandem with related proceedings by Tarcel against CIÉ.

The dispute between the port company and CIÉ and Fishguard and Rosslare Railways and Harbours Company concerns whether or not, and to what extent, the port company has a right of way over a railway line owned by CIÉ. Access to the North Quays may only be gained by crossing the railway line.

The port company claims that, under a written agreement of November 12th, 2004, with the defendants, it was agreed certain lands owned by the defendants would be acquired by the port company for €29,204.

It was also agreed, the company claims, that the defendant companies, if called upon by the port company to do so within two years from November 12th, 2004, and on payment of a sum of between €750,000 and €1 million, would release certain rights and entitlements granted to them. There was also provision in the agreement for a waiver of those rights and entitlements, it was claimed.

The port company claimed it sold the North Quays to O'Brien O'Flynn Ltd (now Tarcel Ltd) for €32.6 million in February 2005. To complete the sale, the port company said it had to produce evidence that the defendants acknowledge that the right of access to the Frank Cassin wharf (part of the North Quays) was an "all purpose and at all times right".

The defendants were called upon on July 17th, 2006, to provide waivers as set out in the November 2004 agreement but refused to do so, it is alleged. The defendants had insisted the closure of the gates on the railway crossing must be subject to their overall control.

The defendants have denied the claims and have pleaded that the port company had promised to give an acknowledgement from CIÉ to the purchaser on the access issue, which CIÉ was not contracted to give.