Property developer Paddy Kelly and two other businessmen are challenging before the US courts a $5.77 million judgment granted against them by a Florida court, the Commercial Court heard today.
Because proceedings have been initiated to set aside the Florida court’s judgment on grounds it was secured on foot of a settlement which may breach US tax law, Mr Justice Peter Kelly has adjourned generally an action before him aimed at enforcing the Flordia court’s judgment here.
The judge was also critical of the manner in which Bussoleno Ltd, described as a British Virgin Islands company, had presented legal documents to support its claim and said Bussoleno should get its paperwork in order if the matter was to return before the court.
The fact a solicitor inserted a date in an affidavit sworn on behalf of Bussoleno after that affidavit was sworn was “unorthodox and alarming” as courts had to treat sworn documents as solemn declarations on oath of what they state, he said.
Bussoleno had brought its proceedings for summary judgment orders against Mr Kelly, Clonmore, Shrewsbury Road, Dublin; John McCabe, The Rath stud farm, Ashbourne, Co Meath, and John Walsh, Tinnahinch, Plunkett Avenue, Foxrock, Dublin.
Brian Cregan SC, for Mr Kelly and Mr McCabe, previously said his clients would claim the mediated settlement in the US arose from misrepresentations and inducements by Rene Gareau who was a party to the mediation and also had an interest in Bussoleno. It was being contended the mediated agreement and payments made under that agreement may constitute an offence under US tax law.
Ciaran Lewis, for Mr Walsh, said his client was advancing similar arguments.
Bussoleno argued there was no defence to its application to enforce the Florida court’s judgment of April 24th obtained on foot of a mediated settlement which, Bussoleno claimed, was executed and not honoured.
The company claims the Florida court ordered it should recover $5.75 million, plus interest at eight per cent per annum, against the three defendants jointly and severally. It claims that judgment enforced a mediated settlement in proceedings involving Bussoleno against Irish American Management Services LP (IAMS) and Irish Management Services I LP (IAMSI) — both limited partnerships with offices in Sarasota, Florida — and the defendants.
Bussoleno claims the Florida court proceedings were brought under a complaint filed on January 28th, 2008 and sought to enforce Bussoleno’s rights under five promissory notes - four from IAMSI and one from IAMS - guaranteed by the defendants.
Bussoleno claims payments of $225,000 were made under the mediated settlement. After the defendants failed to make a payment due on March 14th last of $112,500, Bussoleno claimed entitlement to final judgment for $6 million, less the $225,000 paid. The motion for final judgment was granted on April 24th.
Reuters