Director `badly treated' in Telecom land sale

A Director of an engineering firm was "very badly treated" in his dealings with a subsidiary company of Telecom Eireann (now …

A Director of an engineering firm was "very badly treated" in his dealings with a subsidiary company of Telecom Eireann (now Eircom) regarding the sale of land in Co Dublin two years ago, a High Court judge said yesterday. There appeared to be a straight case of "gazumping" on the part of Irish Telecommunications Investments plc Mr Justice Geoghegan added.

Although Eircom had succeeded in its claim that it had no "concluded agreement" with Mr George Shirley, managing director of Shirley Engineering Ltd, Mr Justice Geoghegan said he believed Mr Shirley had been treated very badly. The judge said he would not make an order directing Mr Shirley's company to pay Eircom's legal costs.

Mr Shirley had claimed damages for breach of an alleged contract in which ITI had agreed to sell his company 14 acres of land at Clondalkin industrial estate for £780,000 in February 1997.

In a reserved judgment, Mr Justice Geoghegan said Telecom Eireann, as agent for ITI, put the land up for sale as surplus to its requirements. The sale with Shirley Engineering fell through because a higher offer came in. That second transaction was also never completed, the judge noted.

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Mr Shirley had been understandably aggrieved as it appeared to be a straight case of gazumping on the part of ITI, the judge said. But, with great regret and sympathy for Mr Shirley, he had to dismiss the action.