Builder granted court order against developer

The High Court yesterday issued orders against a Co Donegal developer after it was told he has failed to pay an arbitration award of £196,000 to a builder. Mr Frank Boyle, a builder, of Lisnennan, Letterkenny, secured the orders against Mr Kevin Peoples, a developer, of Fortwell House, Main Street, Letterkenny.

The proceedings arose out of a dispute over construction works at Fortwell, Letterkenny. Mr Boyle claimed he built 38 apartments and 17 houses there for Mr Peoples between May 1993 and January 1995.

Last October, the dispute was referred to an arbitrator, Mr Max Abrahamson, who awarded £196,558 and costs to Mr Boyle.

Last December, Mr Boyle secured leave to enforce the arbitrator's award as a judgment of the High Court. In February, Mr Peoples was refused an order setting aside that judgment.

In an affidavit, Mr Boyle claimed the judgment remains unsatisfied and that he was still owed £196,558 together with costs of £32,267.50. Interest continues to accrue on the latter amount, he said. In court yesterday, Mr Rory Brady SC, for Mr Boyle, applied for a number of orders against Mr Peoples.

Counsel said his client had been unable to establish which apartments and houses in the Fortwell complex had been sold and which were being rented.

Mr Boyle claims Mr Peoples is receiving rental income from some of the apartments and houses. He said he also believed Mr Peoples was selling some units in the development.

He claimed Mr Peoples had made no attempt to satisfy the award. And he was afraid Mr Peoples intended to dissipate his assets within the court's jurisdiction so as to frustrate the enforcement of the award and the subsequent judgment.

He said he has retained the services of an auditor who was willing to act as a receiver by way of equitable execution. He also claimed the arbitration process was subjected to continual delay by the behaviour of Mr Peoples in failing to discover appropriate documentation.

Mr Justice O'Sullivan granted an order that Mr Peoples be orally examined under oath before the Master of the High Court about his assets and any debts owing to him. He also issued an order over monies due to Mr Peoples by the National Irish Bank in Letterkenny and account(s) at the Allied Irish Bank, Letterkenny, Co Donegal.

A further order was granted providing for the production of any books, documents, memoranda, information stored on computer or electronic retrieval system, accounts or other documents and directed that Mr Boyle discover these by way of affidavit. The hearing was adjourned to February 23rd.