Dispute over developer's estate in court

A dispute over the treatment of assets and liabilities of the €400 million estate of the late developer Liam Maye, whose company Castlethorn Construction built the Dundrum Town Centre, has come before the Commercial Court.

Bernard Costelloe, who was involved in various ventures with Mr Maye prior his death in May last year, wants orders requiring Anne Maye, in her capacity as personal representative of her late husband's estate, to honour an agreement concerning treatment of assets and liabilities.

Mr Justice Peter Kelly, after being told the sides are prepared to meet each other, today transferred the case to the Commercial Court list, saying it would benefit from the transfer. He adjourned the case to next month to allow the parties engage.

In his claim, Mr Costello of Greenfield Road, Mount Merrion, Dublin, alleges the sides agreed in August 2008 he would transfer his interest in certain assets and properties in return for a payment of a €2 million to him, plus the assumption by the estate of various liabilities.

He said the assets included corporate shareholdings and properties in Ireland, the US and Europe while the liabilities included certain bank loans. Pending finalisation of the agreement, he claims it was agreed the estate would indemnify him relating to loans of some €400 million.

Mr Costelloe claims he was paid the agreed €2 million, resigned as a director of various boards and executed documents for sale or transfer of interests in the various properties covered by the agreement.

However, he alleges Ms Maye has failed to procure his release from various liabilities referred to in the agreement, including loan accounts and mortgages with Anglo Irish Bank and Irish Nationwide Building Society. The failure to properly indemnify him in litigation related to claims due under loan accounts had left a cloud hanging over him, he said.

He claims Ms Maye's advisers had told him the matters could not be progressed quickly because of the current economic difficulties. While he accepted the downturn had caused difficulty, he believed there was no desire to perform the agreement fully any longer.

He was also concerned there "may be a specific policy of cherry-picking the assets for sale while allowing the other assets to perhaps be passed on to the National Assets Management Agency".

Ms Maye, he believed, had "very significant assets" at her disposal to meet his claim.

In an affidavit, Anne Maye of Weavers Hall, Plunkett Avenue, Westminster Road, Dublin 18, said the bid by Mr Costello to transfer the case to the Commercial Court was premature given efforts by the sides to address issues.

It was "absolutely incorrect" for Mr Costelloe to allege primary assets were being "cherry-picked and sold", she said. Three of four assets referred to were, in the context of the overall assets, "minor", while the only significant asset was sold at a loss, she said.