A Co Roscommon businessman told the High Court yesterday he was ready to purchase 25 acres of land in Roscommon town in 2001 for IR£2.75 million when he was advised his bank would not lend necessary finance because the lands were not zoned residential.
Ms Elaine MacSharry, the wife of former EC Commissioner Mr Ray MacSharry, and her brother Mr Gerard M. Neilan, have brought proceedings against the businessman, Mr Michael McSharry (no relation), with an address in Castlerea, and his partner, Mr Francis O'Hagan, who is living in London but has an address at Park Road, Manorhamilton, Co Leitrim.
Ms MacSharry and her brother have asked the court to hold that Mr McSharry and Mr O'Hagan must comply with a written contract for the purchase of the lands, which are on the Galway road on the outskirts of Roscommon town.
Mr McSharry and Mr O'Hagan deny that they refused to complete the sale. They claim they validly and lawfully rescinded the contract because it had been warranted to them that the lands were zoned residential when they were not so zoned. They have counterclaimed that they are entitled to compensation.
Mr Justice O'Leary was told the issue was whether Ms MacSharry and her brother had made any misrepresentation in connection with the sale. The court must also decide that, if such a misrepresentation was made, whether it induced Mr McSharry and Mr O'Hagan to buy the land.
Yesterday, Mr McSharry said that he was told that IR£3 million was being asked for the lands. He had offered IR£2.5 million, which was not accepted, and he withdrew the offer shortly before the lands went for auction on June 16th, 2000. The lands were described at the auction as "zoned residential".