Long-running legal proceedings over the €412 million purchase in 2006 of the Irish Glass Bottle site at Ringsend were struck out at the Commercial Court yesterday.

The case was initiated in 2008 by developer Bernard McNamara, who later filed for bankruptcy in the UK, and his company Donatex Ltd, and involved multiple pre-trial applications. It was set down for hearing later this month.

Donatex and Mr McNamara alleged the DDDA had no lawful power to enter into the November 2006 glass bottle site agreement and was unable to perform its obligations under the deal, therefore frustrating the development of the site and causing substantial losses for them.

After Mr McNamara was adjudicated bankrupt last year, an issue arose as to whether the proceedings could be maintained in his name as a bankrupt cannot bring legal proceedings. The UK trustees administering his bankruptcy told the Commercial Court last month they had decided against continuing the claim on behalf of the creditors of his estate. In those circumstances, Mr Justice Peter Kelly ruled the action could not be maintained by Mr McNamara.

Litigation costs

An issue remained as to whether Donatex, which is insolvent, could continue with the case. Lawyers for the DDDA indicated they might seek orders requiring the company to provide security for the costs of the litigation.

Yesterday, the judge was told by Martin Hayden SC, for Donatex, that its directors had decided, given the trustees’ position, the company could also no longer continue to prosecute the case. The directors – Ann Reid and Peter O’Hagan – took that decision in recent days, it was indicated in court.

Mr Justice Kelly awarded costs against Donatex.