IN THE COURTS:The second in a series of articles on how the economic slowdown is manifesting itself in the courts

THE MID-MORNING sun shone on the yellow walls inside Court 14 yesterday as Ms Justice Mary Finlay Geoghegan listened to barristers address her on matters to do with the schemes of arrangement that should apply in the case of Sharmane Ltd and its subsidiaries, otherwise known as the Thomas Read pub group.

As well as counsel for the examiner there was also legal representation there for AIB, ACC, Diageo, Anglo Irish Bank, Ulster Bank, the Revenue Commissioners, Britvic Ireland and Marks Spencer.

A middle-aged man in a short quilted coat and jeans came in and stood in the corner near the door, listening.

When the court rose for an adjournment, he agreed to sit on one of the benches outside in the corridor for a short interview.

Martin Conroy was the minority shareholder in the Thomas Read group that he and Hugh O’Regan built up during the boom years.

Starting out from Flannery’s Bar in Temple Bar, Dublin, they bought the Oak and set up the adjacent Thomas Read’s about 15 years ago.

What was it like trying to run a pub business in Temple Bar during the boom years?

“It was quite easy,” he says. “They were all very good bars and basically there was a major change in the whole drinking culture and café bars came into vogue.”

Not that success was guaranteed, even during the boom years. “When there’s lots of money around people can decide to go to restaurants more than bars. A product is a product, that’s basically it.”

His involvement with the group ended in 2006 by which time the bars in the group included the Bailey, the Harbourmaster, Life, Ron Blacks, the Dawson Lounge, Searsons of Baggot Street, the Forty Foot in Dún Laoghaire and six bars at Dublin airport.

He had “absolutely no interest” in becoming involved again with the group.

So why had he come along to the hearing? “I came along to get first-hand knowledge of what was going on. You hear so many rumours.”

“It’s very sad to see it, actually. It’s very unfortunate what has happened. It was a very famous company but the downturn is basically hitting everyone.”

Down in the Commercial Court, the room was empty apart from the registrar who was getting on with some paperwork. A case that had been expected to last a day had been adjourned and the two parties and their legal representatives were outside negotiating.

Bernard McDaniel of Rathcrogue, Co Carlow, was seeking to get an order for the performance of a contract against John Curly, who gave his address as c/o O’Dea Co solicitors, Eyre Square, Galway.

Since the collapse of the property sector, such actions are becoming more and more common in the courts, according to barristers.

Mr Curly had entered into a contract to buy 13,957sq m of land at Ballinacarrig, Wexford Road, Co Carlow, in June 2007. The price to be paid was €4 million and the deal was to be completed 14 days after Mr Curly got planning permission for the land.

Planning permission was secured in February of last year but the deal had not been completed. Proceedings were issued in September.

In a submission to the court, Mr McDaniel’s solicitor, Michael O’Carroll, of High Street, Kilkenny, said “the current widespread volatility within the property market make these proceedings particularly suited” to the Commercial Court.

The court seeks to facilitate the speedy resolution of commercial disputes.

Lunchtime had arrived when the parties returned to the court and indicated they had reached agreement. The single handwritten copy of the agreement that had been drafted and which had been signed by the two parties as Mr Justice Peter Kelly was emerging from his chambers, was handed in to the court.

A new contract was to be executed which would provide for a new higher price for the lands. €4.5 million. The money was to be paid within 18 months from yesterday.

A deposit of €200,000 which had been paid over by Mr Curly, was to be immediately released to Mr McDaniel and a further €100,000, which was to be paid over within eight weeks, was to be non-refundable.

If Mr Curly failed to pay over the €100,000, then Mr McDaniel would be entitled to sell the land and seek damages for any amount less than €4.5 million which was achieved, plus accrued interest.

If the new contract was not fulfilled within 18 months, then Mr McDaniel could sell the land and seek damages if the price achieved was less than €4.5 million, plus interest. The interest that was to apply would be 4 per cent.

Costs went to Mr McDaniel.

Everyone stood as the judge left the court. A solicitor went off to photocopy the handwritten agreement.