A legal dispute between two bank managers and Cork County Council over a controversial land deal, in which the council negotiated to buy lands for €11.6 million just months after they had allegedly been on offer on the open market for €8 million, has been settled at the Commercial Court.
Under the terms of settlement, the council will buy the 20 acres at Charleville, zoned for housing, from Denis O'Reilly and Brian Cremin "at a price that is satisfactory to all parties", Mr Justice Peter Kelly was told yesterday. The price was not disclosed.
The negotiation of the deal for the Charleville lands is the subject of an internal county council investigation, which has been extended to other property transactions involving the council.
It is understood a senior official has been suspended as part of that investigation.
The settlement of the action brought against the council by Denis O'Reilly, TSB Cork city branch manager, Knysna, Rathpeacon, Co Cork, and Brian Cremin, Permanent TSB regional manager, Ballygurrihy, Donoughmore, Co Cork, was announced by John Gordon SC, for the plaintiffs, to Mr Justice Kelly just before 3pm yesterday after discussions between the sides.
Brian Murray SC, for the county council, read an agreed statement which stated that after negotiations and compromise by the parties, Mr O'Reilly and Mr Cremin had agreed to sell and the council to purchase the lands for a price that was satisfactory to all parties. On that basis, the proceedings were compromised, he said.
Mr Justice Kelly agreed to the request of both counsel to adjourn the matter to November 13th to facilitate implementation of the settlement.
Mr O'Reilly and Mr Cremin had brought the action last May seeking specific performance of a contract allegedly agreed between them and Cork County Council on April 28th, 2006, under which the council had agreed to buy the lands at Charleville for €11.6 million.
The hearing was due to open last July but was adjourned to facilitate an investigation by the council in relation to how the alleged contract was negotiated.
The investigation was triggered when the original vendor of the lands, Pushkin Developments Ltd, queried why the council was planning to buy the land for €11.6 million from the plaintiffs just months after Pushkin put the land up for sale at €8 million.
As part of its investigation, the council has examined mobile and other phone records of employees.
This analysis indicated "a very high level of telephone contact" between a council employee and Mr O'Reilly, it was stated in an affidavit for the council.
That phone activity had increased in and around key dates relevant to the transactions at the centre of the court proceedings and this was one of the "major issues" under investigation.
The county council stressed in its affidavits that the investigation was still at an early stage and it was premature to make findings or allegations of wrongdoing. It was possible there was an explanation which involved no impropriety, it was stated.
In its defence and counterclaim to the action, Cork County Council denied there was any contract or any valid contract for the sale of the lands with the plaintiffs. If there was a contract, it should be revoked because of false representations to it by the plaintiffs or their agents, it was claimed.
The council also counterclaimed for return of a €1.16 million deposit paid to the plaintiffs.
