Action over €20m bill for 'defective' housing infill

A COURT action over an estimated €20 million bill for repairing damage allegedly caused by the use of “defective” infill in the construction of 300 houses on estates in Co Dublin is likely to last a year, the Commercial Court heard yesterday.

Mr Justice Peter Kelly was also told that 30 affected householders have issued their own separate proceedings over the damage to their homes.

The judge was dealing with preliminary matters concerning an action by four construction companies which are seeking to be indemnified by three companies in the Lagan Group for the estimated €20 million cost of repairing the affected houses.

The judge was told a vast number of legal issues were involved in the case.

He said case management issues would be dealt with by Mr Justice Peter Charleton and he would also seek to find a judge to hear the full action at a date yet to be fixed.

The proceedings have been brought by Hansfield Developments, Viking Construction, Menolly Properties and Menolly Homes against Irish Asphalt Ltd, Lagan Holdings Ltd and Lagan Construction Ltd and relate to houses on three estates in Co Dublin – Drynam Hall, Kettles Lane, Kinsealy, Co Dublin; Beaupark, Clongriffin, Dublin, and Myrtle, The Coast, Baldoyle, Dublin.

Tests have been carried out on the affected houses in preparation for the court action.

The plaintiff companies are within the same corporate group. The first three were involved in construction of the Drynam Hall estate while Menolly Homes was involved in the other two developments. The defendant companies are all within the Lagan Group.

It is claimed that aggregate infill bought from Irish Asphalt Ltd was used in the construction of all three estates and was placed under the floors of various buildings and under common areas such as roads and footpaths.

The infill came from Irish Asphalt’s quarry at Bay Lane near Kilshane, north Co Dublin. The infill is alleged to have contained unacceptable excessive levels of pyrite making it susceptible to swelling which, in fact, occurred, it is claimed.

Because of this, it had caused damage to the units constructed, the plaintiffs allege.

Menolly Homes says it has undertaken to the owners of affected homes and two creches within the estates that it will fund the cost of remedial works to affected units, arrange removal facilities and provide alternative accommodation while remedial works are under way.

However, despite that undertaking, Menolly and the other plaintiffs have received correspondence from solicitors acting for some home owners in which admissions of liability were demanded as well as compensation for alleged loss and damage.

The plaintiffs claim the defendants were negligent and in breach of contract in relation to the infill and are obliged to indemnify the plaintiffs for remedial works and related expenditure on the estates. It is claimed the cost of addressing the problems is some €12.4 million for Drynam Hall; €4.32 million for Beaupark and €2.97 million for Myrtle.