A former partner in the Master Meat Packers group, Mr Zakaria el Taher, suggested in 1987 that profits of $1 million on part of an Egyptian beef deal be kept outside the company and split between Mr Taher and Mr Paschal Phelan, founder of the group, it was claimed in the High Court yesterday.
Mr James Salafia SC said Mr Phelan had objected to the suggestion and told Mr Taher, a Jordanian businessman who owned 50 per cent of the group, he could not do that. It was not the way business was done.
As a result of the dispute, the rest of the beef deal fell apart, counsel said. There was a question over who had picked up the rest of the deal. There was a gross profit of some $4.5 million on the entire deal.
The Egyptian deal was a core issue between Mr Phelan and Mr Taher in the ongoing legal proceedings involving both men and beef baron Mr Larry Goodman, counsel said.
The dispute also occurred against "a false background", with Mr Phelan being unaware that Mr Taher had earlier sold his shareholding to Mr Goodman, while holding himself out to be still a partner of Mr Phelan. Mr Salafia, with Mr Brian O'Moore SC, for Mr Phelan, was continuing his opening of an action by Mr Phelan against Mr Goodman and Mr Taher in which Mr Phelan is alleging there was a conspiracy between both defendants and others to force him out of the group in the 1980s.
Mr Justice Murphy is hearing this and other actions regarding the affairs of the company. For the purpose of the proceedings, Mr Goodman has accepted he owned and controlled Master Meat Packers since 1987, but both he and Mr Taher deny allegations of wrongdoing.
Mr Dermot Gleeson SC, who with Mr Donal O'Donnell SC and Mr Paul Gallagher SC represents Mr Goodman, may outline his case tomorrow or when the case resumes in mid-June.
During yesterday's hearing, Mr Salafia continued to detail documents relating to the affairs of the group in 1987 and 1988. Some outlined Mr Phelan's concerns that Mr Nasser el Taher, a son of Mr Taher, had set up Taher Meats which was in competition with Master Meat Packers. Mr Salafia said other documents indicated Mr Goodman was in 1987 issuing instructions in relation to getting information on the affairs of Master Meat Packers.
