TWO MEN have settled their High Court action against a firm of solicitors over alleged negligence in how they were advised in relation to a €1.6 million property deal.
Kevin Gormley and Conal Davey acquired the leasehold interest in a property at 4 Leeson Lane, Leeson Street, Dublin 2, in 2006 in a €1.6 million deal after their solicitors, Sean O’Ceallaigh and Co, assured them they were entitled to purchase the full freehold interest for a small sum.
Mr Gormley and Mr Davey, both of St Alphonsus Road, Drumcondra, Dublin, said they had intended to develop the property. But after they acquired the lease, they discovered – because the building’s freehold was owned by the Office for Public Works (OPW) – that they were not entitled to buy it despite the legal assurance.
Consequently, they were unable to proceed with plans for the premises and had suffered loss, they claimed.
Mr Gormley and Mr Davey brought proceedings seeking damages for negligence and breach of contract against Ruairi O’Ceallaigh, Cormac O’Ceallaigh and Graham Jones, all practising under the title of Sean O’Ceallaigh and Co Solicitors, North Circular Road, Phibsboro, Dublin 7.
They claimed the defendants failed to advise them of the true nature of the interest being purchased, failed to carry out any inquiries into the title or the identity of the owner of the freehold.
Liability was conceded and the matter was before the High Court for assessment of damages only.
Following discussions between the sides, president of the High Court Mr Justice Nicholas Kearns was informed the matter had been settled and could be struck out.
No details of the settlement were revealed to the court.
James O’Dwyer, for the plaintiffs, said his clients had in June 2006 engaged the defendants to act as their solicitors after they became interested in the premises.
His clients were assured by the defendants, if they purchased the leasehold, they would be entitled to buy the full freehold interest for a small sum under the 1967-84 Landlord and Tenant (Ground Rent) Act, counsel said.
As a result of those representations they paid €1.6 million in August 2006.
After completion of the sale, they discovered the leasehold interest did not entitle them to purchase the freehold because the freehold was owned by the OPW.
The O’Ceallaigh firm was wound up by the High Court last October with liabilities of up to €5.8 million.
The Law Society sought that order after it emerged Ruairi O’Ceallaigh allegedly used almost €2.5 million of client money to gamble on stocks and shares.
Papers in the case were referred to the DPP.