Two international companies described as "major world players in the world of technology" were involved in High Court proceedings yesterday over an alleged debt of €4 million.
Cable & Wireless (Ireland) Ltd claims it provided internet services to WorldPort Communications Inc in New York and London and that the total value of agreements between the two companies over their three-year lifetime was €2,734,863 in relation to New York and £1,162,500 in relation to London.
Mr John Gordon SC, for Cable & Wireless, said his clients were initially paid by WorldPort directly from the US.
However, by January 2002 considerable arrears had built up after WorldPort ran into financial difficulties and had defaulted on payments.
The arrears in relation to New York were € 375,000 and in relation to London were £ 155,000.
Mr Gordon said that Cable & Wireless wrote to the American company which responded stating it was terminating agreements on behalf of its Irish subsidiary.
Worldport also stated that Cable & Wireless was mistaken in looking for the monies from the American company and that they should be looking for it from the Irish company.
That suggestion from the American company was very convenient as, at the time, the Irish company was broke, counsel said.
Mr Gordon & Cable and Wireless demanded payment of arrears and sums which became due under the three year agreement.
WorldPort had basically contended that Cable & Wireless was looking for the monies from the wrong company.
The American company also contended that the Cable & Wireless proceedings were being brought in the wrong country and that the forum for such a hearing was in the United Kingdom.
Mr Gordon said he was seeking summary judgment for the total debts against WorldPort as it had ignored demands for payments of the arrears.
He recognised that the court might have to decide if, at present, he should only get judgment for the outstanding arrears.
Were the matter to go to a full hearing, he was seeking a speedy trial of the claim.
In an affidavit, Mr James Crowe, of Airton Road, Tallaght, a director of Cable & Wireless, said that his company received a fax from WorldPort in January 2002 which sought to pin all liability onto the Irish subsidiary.
He refuted the contents of that letter and claimed that it demonstrated the desire of the American company to avoid paying its debts. He said Ms Kathleen A Cote, chief executive of WorldPort Communication Inc of Chicago and the author of the letter, had known when writing it that her Irish subsidiary was virtually closed down and was now, Mr Crowe believed, in liquidation.
The purchase orders had come from WorldPort and not its Irish subsidiary.
In an affidavit, Ms Cote said she believed WorldPort Communications Inc was improperly joined as a party to the Irish proceedings and that Cable & Wireless had entered into an agreement to have recourse only to the English courts in the event of a dispute.
The hearing before Mr Justice O Caoimh was adjourned to next week.
