Nama challenges McCabe ring fee

The National Asset Management Agency has asked the High Court whether a Dublin jeweller can retain a €7,500 commission on the €149,000 sale of a solitaire 8.38 carat diamond ring owned by the wife of developer John McCabe.

At the Commercial Court yesterday, Mr Justice Peter Kelly stressed there was no issue about the integrity of jeweller John Farrington concerning his involvement in the sale of the ring in Florida earlier this month.

However, all €149,000 must, pending further order, be provided to a receiver appointed by Nama over those proceeds, plus a diamond bracelet and necklace of Mary McCabe’s, the judge said.

Receiver Jim Hamilton has possession of the bracelet and necklace but the ring was sold in Florida some two weeks after the agency asked Ms McCabe to hand it over.

Ms McCabe is the wife of John McCabe, whose companies owe €235 million to Nama. Nama, in seeking to enforce a €20 million judgment against Ms McCabe, had challenged as too low a €140,000 collective valuation placed by her on the ring, bracelet and necklace.

Yesterday, after Mr Justice Kelly was told by John McCabe jnr, son of Ms McCabe, she was not contesting the receiver’s appointment, the judge confirmed his appointment.

Rossa Fanning, for Nama, said an issue had arisen in that Mr Farrington had deducted 5 per cent commission from the sale proceeds of the ring. Some €142,000 was transferred to an account for the receiver but commission of €7,500 had been retained.

The receiver had also stated he was advised by Mr McCabe jnr that Mr Farrington had agreed to sell the ring for no commission, so it was not clear why commission had been deducted, counsel said.

Mr Farrington was put out by the attention but there was no allegation against him and no complaint about his integrity, counsel said.

Mr Justice Kelly directed all the sale proceeds be given to the receiver pending a decision on commission later.