Celebrity chef Mr Conrad Gallagher has undertaken before the Master of the High Court to lodge a bank draft for £15,000 in court by Friday in relation to an application for judgment for £70,500 sought against him by the landlord of the premises which formerly housed his restaurant, Lloyds Brasserie.
The £70,500 is sought for alleged rent arrears and an alleged unpaid personal loan.
Mr Gallagher gave the undertaking on oath yesterday to the Master, Mr Harry Hill SC. On foot of the undertaking, Mr Hill said the case would be sent for a full hearing to the High Court and the draft would be lodged in the joint names of the solicitors for the parties pending the outcome of the action. He adjourned the case until Friday.
During yesterday's hearing, Mr Gallagher said in an affidavit that there had been "a litany of problems on a daily basis" over the past 2 1/2 years with the premises at Upper Merrion Street, Dublin.
In some instances, the problems were so serious as to force the closure of the restaurant. The net result was a substantial under-performance by the restaurant which in turn had caused a loss to the company. Mr Gallagher said he had spent money on the restaurant and he was counter-claiming in respect of it.
Mr Conor Bowman, for Mr Gallagher's former landlord, Mr Gerard McGurn, said in 2 1/2 years there had not been a single line in writing complaining about the matters to which Mr Gallagher had referred. Mr Justin McQuade, for Mr Gallagher, said his client and Mr McGurn had met informally on a regular basis.
Judgment for £70,500 is being sought against Mr Gallagher by Mr McGurn, the landlord of the Upper Merrion Street premises which formerly housed Lloyds Brasserie.
The sum is made up of £57,500 in alleged rent arrears and £13,000 for a personal loan which Mr McGurn claims to have made to Mr Gallagher and which, it is claimed, was repaid by a personal cheque which "bounced".
In an affidavit, Mr Gallagher said he was a director of Creative Foods Ltd, whose principal business was the management and operation of Lloyds Brasserie. By a contract of October 1997 he was a guarantor for the company and he had been advised the claim against him was on foot of the guarantee.
As a result of Mr McGurn's actions, the restaurant had been forced to close and was no longer trading, he said. Under the contract for the lease dated October 31st, 1997, it had been agreed that Mr McGurn would carry out works so that the premises would be reasonably fit for the operation of a high-quality restaurant.
In breach of the agreement, the landlord had failed to provide heating and an air-conditioning system to specification; failed to install an immersion and tank to provide the required level of hot water; failed to make good and dryline all alcoves; had installed sub-standard doors to the toilet; failed to refurnish toilets; failed to renew wiring, plumbing and lighting; and failed to renew lighting, extraction and electrical outlets in the kitchen.
Mr Gallagher also claimed that the sewerage system for the building, which was located directly beneath the restaurant, was problematic. Seven times in the last year sinks were blocked and overflowed, causing noxious fumes throughout the restaurant.
In the first week of May 1999 sewage overflowed at the front door of the restaurant. The granite floor had to be broken up and removed to remedy the problem. The restaurant had to be closed for the day. He had to wait three weeks for replacement granite to be fitted, Mr Gallagher said.
It was agreed that any money spent on carrying out repair works to bring the premises up to the standard required and to ensure it was fit for the intended purpose would be set off against future rents, he added. Mr Gallagher referred to various works done at the premises.
On May 2nd last, he met Mr McGurn and they agreed the money he had spent would be offset against rent due and owing in consideration for the payment by Mr Gallagher to Mr McGurn of £13,000. The parties compromised the claim for rent by offsetting the expenditure by Mr Gallagher, he added. He believed he had a bona-fide defence to the action and had been advised he had a cause of action for general damages.
Mr Hill asked if there were any receipts for the payments which Mr Gallagher stated he had made. Mr McQuade said it would take further work to get the receipts. The invoices were exhibited.
Mr McQuade said Mr Gallagher had given a £13,000 cheque to Mr McGurn and had said not to lodge it until he had heard from Mr Gallagher's personal assistant. Mr Gallagher was prepared to pay £13,000 into court if he was allowed 24 hours.