A High Court judge yesterday struck out proceedings taken by a cement manufacturer, Sean Quinn Group, against Lagan Cement after he found the action was mounted in "a cynical, calculated and unscrupulous fashion" for the sole purpose of inflicting damage on a competitor.

Mr Justice Quirke dismissed the action in which the Sean Quinn Group had challenged planning permission granted to Lagan by Meath County Council in April 1999 to a cement manufacturing installation and factory at Killaskillen, near Kinnegad.

Lagan had applied to have the Quinn action dismissed on grounds that they comprised an abuse of the process of the courts and were vexatious in nature.

In his reserved judgment yesterday, the judge was satisfied the purpose of the Quinn proceedings was not to redress a wrong or a grievance, to right an injustice, to ensure compliance by Lagan and other potential developers with provisions of national or international legislation, to ensure proper and lawful planning and development of any particular area, or for any other commendable or civic spirited reason.

"I am satisfied that the sole purpose of the proceedings is to inflict damage upon its competitor, Lagan," he said. "I am satisfied that that is an improper purpose for the commencement of proceedings and an improper use of the process of the courts." He ordered the Quinn Group to pay the costs of Lagan and An Bord Pleanala.

Mr Justice Quirke said the Sean Quinn Group engaged in the manufacture, distribution and sale of cement in Northern Ireland and recently began similar operations in Co Cavan, under permission granted by An Bord Pleanala in June 1998.

After Lagan was granted planning permission in 1999, certain parties not involved in the present proceedings brought an appeal to An Bord Pleanala, which indicated its intention to make a decision last April.

The Quinn Group applied for, but was refused, an injunction restraining the board from making a determination of that appeal.

Mr Justice Quirke said that in December 1998, the Sean Quinn Group, by its agent, Mr Sean Quinn (who was apparently its beneficial owner), was fully aware of Lagan's impending application for planning permission and of its full nature and extent. Mr Quinn had been advised professionally in respect of the Lagan application and admitted during a newspaper interview that the Quinn Group was preparing to object to the application.

In December 1998, the Quinn Group was making covert payments to a group called Ballinabrackey Residents' Action Group by way of surreptitious financial contributions, totalling £30,000 (€38,119). This money was to fund legal proceedings started by a Ms Marie Goonery for the purposes of seeking to restrain Meath County Council from determining Lagan's planning application, he said.

Those proceedings were compromised in March 1999 on terms which included the payment of £50,000 from Lagan to Ms Goonery, as a contribution towards her costs of those proceedings. In May 1999, Ms Goonery began new proceedings seeking relief which was virtually identical to the relief sought on behalf of the Sean Quinn Group. An interim injunction obtained by Ms Goonery was discharged by the High Court in July 1999.