DUNNES Stores is disputing an arbitrator’s decision directing it to pay about €20 million to a construction company in relation to a shopping centre development in Kilkenny.
Holtglen Ltd asked the Commercial Court yesterday to fast track the hearing of the Dunnes’ challenge and also indicated it intends to bring its own proceedings for an order enforcing the arbitrator’s award.
The company says it has large borrowings in connection with the development at Ferrybank, Kilkenny, and it is “of the utmost importance” that it is paid by Dunnes as soon as possible.
This was particularly so because Dunnes, in refusing to fit out its anchor store at the development, was seeking to thwart the opening of the shopping centre, Dermot McPhillips, a director of Holtglen, claimed in an affidavit.
Mr Justice Peter Kelly agreed to the application by Maurice Collins SC, for Holtglen, to transfer the proceedings to the Commercial Court, and made directions for the exchange of legal documents and returned the case to March 2012.
Brian O’Moore SC, for Dunnes, consented to the case being fast-tracked.
The arbitrator’s award was made last October following the lengthy hearing of disputes between Dunnes and Holtglen, arising from an agreement of June 2007 for the building of an anchor store and other stores in a shopping centre and commercial development at Ferrybank.
Under the 2007 agreement, Dunnes was to pay sums totalling more than €38 million to Holtglen in staged payments.
Holtglen claims practical completion of the anchor store was achieved in June 2009, while practical completion of the shopping centre was achieved by August 2009.
It claims Dunnes refused to pay monies due on achieving those milestones and instead, in an alleged attempt to avoid paying the monies, instituted arbitration proceedings claiming breaches of a development agreement by Holtglen, which counterclaimed for payment.
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