A counterclaim by beef baron Mr Larry Goodman in a legal action taken against him by Master Meat Packers (MMP) founder Mr Paschal Phelan is a "sort of Frankenstein" aimed at deterring Mr Phelan from continuing with his proceedings, it was claimed in the High Court yesterday.
Mr Phelan was alleging there was a "most disgraceful" conspiracy by Mr Goodman and others, Mr Brian O'Moore SC for Mr Phelan said. But Mr Goodman had brought a counterclaim as a "forbidding deterrent to Mr Phelan going on with his main claim". This was to be kept in reserve and thrown in whenever Mr Phelan opened a breach in the Goodman front line.
In continuing actions involving Mr Phelan, Mr Goodman and others, Mr O'Moore was replying to arguments made on behalf of Mr Goodman and by Mr Phelan's former partner in MMP, Jordanian businessman Mr Zakaria El Taher.
In his action, Mr Phelan claims manufactured difficulties led to the engineered collapse of MMP in the 1980s. He also alleges he was betrayed and "sold out" by Mr Taher.
Mr Phelan claims he and Mr Taher were equal shareholders in 10 companies in MMP. He alleges there was a conspiracy between Mr Taher, Mr Goodman and others in April 1987 to secure the removal from the meat trade of MMP, whether by putting the group into receivership or securing ownership and control.
For the purpose of the proceedings, Mr Goodman accepts he owned and controlled MMP since 1987, but Mr Goodman and Mr Taher deny Mr Phelan's allegations of wrongdoing. In his defence, Mr Taher alleges Mr Goodman acted to defraud and damage Mr Phelan with a view to eliminating MMP as competitors to Goodman International or to establishing a monopoly in the Irish beef industry.
Mr Goodman has also counterclaimed that if Mr Phelan suffered any loss or damage, it was due to Mr Phelan's fraud, negligence or con tributory negligence (or, alternatively, by his servants or agents) because of the way he ran and controlled the affairs of MMP. In particular, it is alleged he got the companies to make payments to him, failed to supervise the affairs of the companies and failed to take any or adequate steps to prevent payments being made to persons who were not entitled to them.
Yesterday, Mr O'Moore referred to Dublin accountant Mr Laurence Crowley, whom Mr Phelan has alleged falsely held himself out as acting for Mr Taher when, Mr Phelan alleged, Mr Crowley was acting for and on behalf of Mr Goodman. It is also claimed on behalf of Mr Phelan that Mr Crowley conspired with and assisted Mr Goodman in eliminating Mr Phelan from the Irish beef industry. Mr Taher claimed Mr Crowley had acted against Mr Taher's instructions.
Mr O'Moore said Mr Crowley had put himself in a position, or was put in a position by Mr Goodman, where he seriously misrepresented Mr Phelan to a whole range of people - to the people of Ireland, a Government minister and the Fair Trade Commission.
Strong allegations of fraud had been made against Mr Phelan that had their genesis in proceedings brought on behalf of MMP companies in November 1988, counsel said. Those allegations had been supplemented in an amended claim delivered on September 29th, 2000.
The allegations were originally made within months of Mr Phelan ceding control of MMP to Mr Goodman. Mr Phelan had had to get proof - at one stage it looked an impossibility - that Mr Goodman owned the companies at all material times.
A lot of these allegations were old hat even in 1988, counsel said. Worse than that was the fact substantial aspects of the proceedings brought by the companies against Mr Phelan were settled. Mr O'Moore said he would be arguing the entirety of the claims were settled years ago during the course of hearings in the Northern Ireland High Court.
The hearing continues.
