Dunne challenges Heffernan in High Court over administration of late sister's estate

MR Ben Dunne has brought two sets of legal proceedings against his sister, Ms Margaret Heffernan, the High Court was told yesterday…

MR Ben Dunne has brought two sets of legal proceedings against his sister, Ms Margaret Heffernan, the High Court was told yesterday.

Mr Dunne has applied to have the estate of their late sister, Therese Dunne, administered either by the court itself or by someone appointed by the court rather than by Ms Heffernan, who was named by the deceased to be executrix of the will.

He has also challenged what he claims is Ms Heffernan's intention to appropriate the late Ms Therese Dunne's 265 preference shares in the Dunne Stores group of companies. Yesterday, Mr Paul Gallagher SC, for Mr Dunne, applied to the court for discovery of documents associated with this allegation.

Mr Gallagher said Ms Dunne died in September 1995, having made her will in 1994. Probate was issued in November 1995. The net distribution value of the estate was £22.5 million.

READ MORE

Mr Gallagher said his client was seeking a court order that the estate be administered either by the court or someone appointed by the court. Mr Dunne contended Ms Heffernan had failed very fundamentally in her duties as an executrix and in particular in the furnishing of an affidavit to the Revenue authorities setting out the value of the estate.

Ms Heffernan has also written to all the beneficiaries of her sister's estate, including Mr Dunne, who was entitled to a one fifth share, purporting to inform them of her intention to appropriate certain shares in relation to companies which formed part of the estate.

Mr Dunne had written a letter objecting to the appropriation. Undertakings had be given by Ms Heffernan not to appropriate the shares, pending the outcome of both sets of proceedings.

Mr Gallagher told Mr Justice Smyth that the shares had been returned in the affidavit submitted to the Revenue as being valued at £1 each.

Ms Heffernan claimed that the valuation was in accordance with the company's articles of association. Mr Dunne claimed the valuation was not in accordance with the requirements of the Capital Acquisitions Tax Act and that the shares had a value of £75,000 each, giving a total value of £19.875 million.

Mr Gallagher said Ms Heffernan denied the shares had been wrongly valued. The original affidavit to the Revenue had been corrected in relation to one company in the group.

Mr Gallagher told Mr Justice Smyth that when his client was no longer associated with the Dunnes group, the valuation attributed to the preference shares would have other consequences for him.

He said that conflict between Mr Dunne's and Ms Heffernan's claims meant that an order for discovery of document's was relevant to the proceedings.

The only documentation which the defence was prepared to furnish related to the administration expenses. They were disputing the requirement to provide other documents to Mr Dunne.

Mr Gallagher said his client would be willing to give undertakings as to confidentially in relation to documents and information supplied.

Told that the children of another sister, Ms Elizabeth McMahon (who predeceased Ms Therese Dunne), were beneficiaries, Mr Justice Smyth said that until the "fracas" between brother and sister was resolved, Ms McMahon's children had to wait.

Mr Gallagher said there was no desire in his client's part to hold up the administration of the estate. Ms Heffernan had been given opportunities to deal with the issues in relation to valuation, but had not done so and had gone ahead with appropriation. This led to the second set of proceedings.

Lawyers for Ms Heffernan will reply tomorrow.