THE HIGH Court has awarded more than €279,000 damages to a couple who agreed to sell their home and surrounding lands in exchange for a new house which they never received.
Graham and Yvonne Malone, Mullaghland, Mullagh, Co Cavan, had sued developers Gerard Briody, Baltrasna, Oldcastle, Co Meath, and James Sheridan, Lismacigian, Mount Nugent, Co Cavan, and their company Coral Properties Ltd, Cavan Road, Oldcastle.
Ms Justice Mary Laffoy heard the couple agreed in May 2006 to sell their home and lands at Prokofiev, Rose Hill, Mullagh, to the defendants for €600,000, plus a dwelling house to be constructed as part of a proposed development of more than 90 houses at Kells Road, Mullagh.
A building agreement for the new house was finalised in 2007 between the couple and Coral Properties, which later went into liquidation. Under that contract, their new home was to be built by Coral within 12 months of the closing date of the sale but the couple, although they were paid the €600,000 as agreed, never got their new home and brought High Court proceedings.
Yesterday, the court heard the defendants, while not consenting to orders being made against them, were not opposing the action.
The court heard Coral Properties had obtained planning permission to build 96 homes and a creche on lands including the site of the Malones’ former family home at Rose Hill. Under their agreement with the defendants, the couple were to receive a four-bedroomed semi-detached house in the development, valued in 2007 at €270,000 and now valued at about €100,000.
The couple moved out of their old home and into rented accommodation but became concerned there was no progress on their home within the agreed time.
They were also distressed that their old home was demolished before they had taken all their possessions out.
Mr Malone said he spoke to Mr Briody about lack of progress on their new house and was told work had to be done on other houses on the site.
Mr Malone said he and his wife were offered their choice of other completed houses on the site and decided to accept a four-bedroom house. Following advice from the defendants, they spoke to a company about having the kitchen in that property fitted out.
Despite doing all that, nothing happened, he said. He made a number of attempts to phone Mr Briody but his messages were unanswered. He also texted Mr Briody who replied in a text on September 4th, 2008: “You will get your house.” Mr Malone said that they were never provided with the house and Coral Properties went into voluntary liquidation in March 2009. A large number of judgments were registered against the site, the court heard.
In her ruling, Ms Justice Laffoy said this was an unusual situation as part of the contract had been fulfilled but, having assessed the evidence and law, she was satisfied the couple were entitled to €279,000 against the defendants.
She assessed damages equivalent to the value of the house the couple were to be provided with under the contract.