A dispute over an alleged €1.4 million shortfall of funds for the design and construction of a championship golf course at Blarney, Co Cork, has been referred by the High Court to be decided at arbitration.
Mr Justice John MacMenamin said he had indicated to MF Irish Golf Design and Kelcar Developments that it would not benefit their reputations to continue proceedings in open court and had suggested they consider their positions.
The issues had, however, been fully ventilated in court and he felt it was entirely regrettable that matters had to proceed to that level. He felt there should have been a better and more effective way of the parties resolving their differences.
Professional golfer and golf course designer Mel Flanagan, of Abbeycartron Lane, Longford, director of MF Irish Golf Design, had obtained an interim injunction against Kelcar Developments restraining it from interfering with his company's entitlement to complete the John Daly Signature golf course, near Muskerry East, Co Cork.
He had told the court Kelcar Developments had terminated his firm's €3 million contract to design and construct the golf course and had employed sub-contractors to complete the development, which he alleged was 95 per cent finished.
Colm Smyth SC, for MF Irish Golf Design, said Mr Flanagan's company stood to lose €1.4 million which he claimed was still outstanding on the contract and for extra works which had been undertaken.
Frank McCarthy, Castledermot, Co Kildare, a director of Kelcar, said a letter of appointment had made it clear either party was entitled to terminate the contract forthwith by written notice.
He said Mr Flanagan had alleged that €741,000 excluding VAT was due for works completed and had claimed €606,458 for extras. David Holland SC, for Kelcar, said the company considered it had a full defence to the claims and a substantial counterclaim by virtue of MF Irish Golf Design's failure to abide by the terms of the agreement.
He said Kelcar Developments had discharged all invoices presented to it which had been properly certified as being due and no sum remained due for any works carried out under the contract.
Mr Holland said the golf complex included a hotel, spa and more than 50 residential units with an official opening date in July.
Mr Justice Mac Menamin said the court would assist in speeding up the arbitration process.