Solicitor appears over 'dummy' contract

A solicitor has appeared before the Commercial Court over claims that he recently told another lawyer he would be paid €150,000 to get involved in a "dummy" contract, never to be performed, for an onward sale of some lands on a 33 acre site in Co Offaly.

The site is at the centre of an alleged land deal "scam" allegedly driven by former Fianna Fáil Cllr Gerard Killally over which he and others are being sued by several investors for some €10 million.

The investors claim Mr Killally was behind a scheme under which some 33 acres at Mount Lucas, Daingean, were sold to them for €10.6 million in May 2007 when, on the same day but unknown to them, Mr Killally acquired the lands for €4.7 million via a company.

In deciding to get involved in the deal, the investors claim they relied on representations by Mr Killaly and others there was some €4.5 million in unconditional contracts for onward sale of a number of sites the lands, thereby reducing their exposure. Some of them have provided guarantees over a €6.3 million loan provided by the Educational Building Society to help acquire the lands.

The alleged sell-on contracts have not been performed and the investors have argued they were bogus.

Solicitor Jeremy Doyle, a partner in Doyle Hanlon solicitors, Mountjoy Square, Dublin, appeared briefly today before Mr Justice Michael Peart who said he was entitled to an opportunity to produce his file related to the allegations against him concerning alleged sell-on contracts.

Mr Doyle said he was working from memory and had had no opportunity to deal properly with the allegations. He will appear again tomorrow morning to address the issues.

The allegations concerning Mr Doyle were made by Liam Miller, solicitor for Burke & Company Solicitors, Drimnagh Road, Walkinstown, one of the defendants in the case.

Earlier today, Mark Connaughton SC, for Burke & Co, said the firm of Doyle Hanlon solicitors had come up for consideration in relation to two contracts for sale on of some of the Mount Lucas lands.

Counsel said Mr Miller had been verbally advised by Mr Doyle of that firm that, when the contracts were entered into, there was no intention to fulfil them. His side had subpoenaed Mr Doyle to attend court and asked him for a precis of his evidence.

It appeared Mr Doyle and his partner - Graham Hanlon - were parties to the contract, in one instance apparently acting for themselves and in the second instance acting for two other purchasers, counsel said.

Ronan Murphy SC, for the investors, said this information "changes things very considerably" and the only inference from what had happened was that, Mr Killaly, as "motor" of the scheme and others, including solicitors, had conspired together to commit at least part of the fraud on his clients.

The promised contracts to sell on some of these lands, on which his clients relied, were bogus and were intended at the time to be bogus, counsel added. It could not be disputed his clients were defrauded and the manner in which that occurred was of profound importance.

Mr Murphy said Mr Connaughton had said Burke & Company were not aware of the intention that the sell on contracts would not be fulfilled.

It was clear, counsel said, that Burke & Company had suspected there was a fraud in relation to the sales on part of the deal.

Mr Connaughton said he was troubled Mr Murphy was not "a bit more reserved" about what he was saying at this stage. While he was not contradicting Mr Murphy, it was premature to draw conclusions, counsel said.

Mr Murphy said he was entirely comfortable with what he had said.

After discussions with counsel, Mr Justice Peart agreed Mr Doyle should give evidence to the court as soon as possible and Mr Doyle appeared in court at 2pm.

Mr Connaughton put to Mr Doyle Mr Miller had written to him on January 17th last concerning a contract issued to Mr Doyle for acquisition of certain lands at Mount Lucas by Mr Doyle and his partner in the firm.

Mr Miller also had a phone conversation with Mr Doyle arising from which Mr Miller wrote to Mr Doyle on January 24th last setting out clearly that Mr Doyle had confirmed that another man had asked Mr Doyle to sign a contract to acquire a site at Mount Lucas but that contract would never proceed and Mr Doyle would get €150,000, counsel said. Mr Miller had said Mr Doyle had first said that did not occur but had then said it did, counsel added.

Mr Miller had asked Mr Doyle to attend court and a subpoena was later served on him, counsel said.

Mr Connaughton referred to letters from, and on behalf of, Mr Doyle to Mr Miller saying Mr Doyle would attend court. A letter of January 26th last also described Mr Miller's account of the phone conversations with Mr Doyle as "completely inaccurate".

Mr Doyle said he had no difficulty coming to court but his evidence would be from memory at this stage and he was not aware of the nub of the situation. He had been taken short, did not believe this was the way to do business and did not want to say something that was factually inaccurate. His file was in storage and he hoped to have it the next day.

Mr Killally was declared bankrupt after the case was initiated and no defence on his behalf has been advanced. A motion for judgment in default of defence is to be brought against him, it was previously stated. The other defendants, who include some investors, have denied the claims.