Council gets court order stopping arbitration

Dun Laoghaire-Rathdown County Council has secured a High Court order preventing an arbitrator from hearing a claim for compensation…

Dun Laoghaire-Rathdown County Council has secured a High Court order preventing an arbitrator from hearing a claim for compensation by Jackson Way Properties Ltd (JWP). The claim concerns the compulsory acquisition of some 22 acres of its land for the construction of Dublin's south-eastern motorway.

The company, which is under investigation by the Flood tribunal in relation to land rezonings, is claiming up to €116 million compensation.

However, while restraining the arbitration hearing, Mr Justice O'Sullivan said the council acknowledged that JWP was entitled to some level of compensation based on the zoning or use of the company's lands before the change of zoning.

He noted that the council had indicated its readiness to make an interim award on such a basis. Arrangements should be made for an assessment of such value and its payment, notwithstanding any stay on the arbitration. The injunction is to continue until the trial of an action between the sides, but both sides have liberty to apply to court in the meantime.

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In his decision granting the council's application for an interlocutory order, the judge said the council had submitted that the compensation claim, which was predicated on a rezoning of the lands from agriculture to industrial in the 1998 County Development Plan, constituted a claim for "unjust enrichment". The basis of that claim was information made known by the Flood tribunal.

The tribunal had received information that certain monies were paid to elected members of Dublin County Council by and on behalf of Paisley Park Investments Ltd and/or JWP to secure the rezoning of land, including that being compulsorily acquired from JWP, before the 1993 County Development Plan and the current DúLaoghaire-Rathdown Development Plan.

The tribunal had indicated it was inquiring into that matter.

The council had argued that if the allegation of bribery was proved against JWP, the claim and any award on foot of it would constitute "unjust enrichment" of JWP. Any such alleged bribery was strongly denied by and on behalf of JWP.

The arbitrator, Mr John R. Shackleton, was to have opened his hearing on January 14th, but the council obtained a temporary court order three days earlier postponing it.

Mr Justice O'Sullivan said the court should take into account the fact that the tribunal had decided to investigate the allegation. That was not to say, of course, that the allegations were in the same status as if they were allegations supported by affidavit evidence in an injunction before the court.

The judge said he wished to emphasise that his decision in no way implied an acceptance of or any kind of judgment as to the weight to be attached to the allegations made to the tribunal against JWP. In reaching his decision, he had taken into account the decision of the tribunal to inquire into the allegations and not the allegations themselves or any evidence in support of them (if such there was, which he did not know).