Man operating fitness centre at Leopardstown racecourse accused of breaching mediation agreement

A man operating a fitness centre on part of Leopardstown Racecourse deliberately breached a mediation agreement intended to have settled a long-running with the racecourse owners, the Commercial Court has been told.

Philip Smyth, principal of Templeville Developments, which operates the Westwood chain of gyms, denies the claims and alleges he was induced into the settlement on the basis of misrepresentation by the racecourse operators, Leopardstown Club Ltd.

Mr Smyth claims Leopardstown breached the agreement by interfering with car-parking and access for Westwood members during race days. The gym and fitness centre has tennis courts and a soccer pitch in two huge inflatable domes on the racecourse.

Leopardstown Club claims Mr Smyth’s staff were behind incidents allegedly designed to create grievances so the settlement would not have to be adhered to.

Mr Justice Peter Charleton today began hearing an action, due to last four weeks, by Leopardstown arising out of alleged repudiation by Templeville and Mr Smyth of the mediation settlement of October 2011. Mr Smyth counter claims Leopardstown has breached the settlement terms.

Michael McDowell SC, for Leopardstown, said the agreement was supposed to be a new beginning between the racecourse and Mr Smyth who had operated his facilities on racecourse lands since 1982.

Templeville entered into a new lease agreement in 1998 which became subject of a serious dispute after an arbitrator ruled Mr Smyth was entitled, under that lease, to use 5½ acres for car parking, Mr McDowell said.

A car park area had to be replaced because part of the racecourse had to be used for a new section of the M50.

That decision was challenged in the High Court, which in 2010 ruled Mr Smyth had unscrupulously and unethically exploited an ambiguity in the lease and licence in relation to car-parking and Leopardstown Club was entitled to rectification, Mr McDowell said.

In 2011, during the run-up to proceedings by Leopardstown against Templeville over alleged rent arrears of some €5 million, the parties agreed on mediation, Mr McDowell said. An agreement was reached in October 2011, which included Mr Smyth agreeing to pay just over €2 million immediately in rent arrears, with another €1.5 million to be paid in August 2012.

“Almost from the word go,” Mr Smyth acted in bad faith and sought to breach the settlement in a number of respects, Mr McDowell said. Mr Smyth had demanded back the €2 million paid and in early 2012 began paying rent at rates before the agreement.