WESTMEATH COUNTY Council is to receive €440,000 in settlement of its High Court claim that Quinn Direct was required to pay out under a bond guarantee related to a construction firm which was unable to complete a multi-million euro construction project.
The council had brought an action for orders compelling the insurer to pay €500,000 to discharge some of the damages incurred by the council after the builders went out of business and were unable to complete a development including social housing, a handball alley and a building for the local Voluntary Education Committee at Delvin. The work was completed by another firm, but the council claimed it had sustained losses of some €600,000.
Quinn Direct denied the council's claims. On the second day of the action yesterday, Mr Justice Roderick Murphy was told by Michael Howard SC, for the council, that the parties had reached an agreement under which Quinn Direct would pay the council €440,000.
The case arose after the council employed Murenna Construction Limited, following a tendering process, for the Delvin contract at an agreed price of €2.2 million.
The council claimed, under a guarantee bond of February 1st 2006, that Quinn Direct guaranteed the performance by Murenna of its obligations under the contract. Quinn Direct was entitled to nominate a completion contractor to do any work Murenna failed to do, provided the nominee was acceptable to the council.
In the event, Quinn Direct nominated another contractor to complete the work, but the council awarded the contract to another firm for €2.1 million. The council said the successful firm offered a lower tender.
