A SETTLEMENT was announced yesterday of a High Court action over the sale of lands and of an art and furniture collection worth some €6.1 million owned by former Bula director Richard Wood.
Following the settlement, Mr Wood’s collection will now go on display in Fota House, Cork.
Property developers Thomas McCarthy and his sister Michelle, Harty’s Quay, Cork, brought proceedings alleging that an agreement with two of Mr Wood’s companies – Rockrohan Estate Ltd and Barryscourt Ltd, both of Carrigrohane, Cork, – to sell the land and collection to them is valid and binding.
As the case was about to resume, Hugh O’Neill SC, for the McCarthys, told Mr Justice John MacMenamim that the parties had taken up the judge’s suggestion of talks and settlement terms had been agreed. The terms are confidential.
Frank Callanan SC, for the companies, said they were grateful for the time afforded to them for discussions. He said his side was withdrawing any claims of undue influence over Mr Wood made as part of its defence of the case.
In their action, the McCarthys claimed that between 2005 and 2006 they had discussions with Mr Wood “with a view to improving” his financial position through the sale of land and assets owned by him and his companies. In October 2006, agreement was reached to sell to the McCarthys three parcels of land at Carrigrohane/Inchigaggin along with an art and furniture collection, it was claimed.
It is claimed that under the terms of the agreement, the McCarthys agreed to buy the art and furniture for a total of €6,164,848, payable in two instalments. The McCarthys were entitled to select and take delivery of paintings up to the full value of the first instalment which was for €2.65 million.
The agreement provided that the sale of one of the land lots to a third party would only be on the death of Mr Wood or within 21 years, whichever should first occur.
Subsequently, in a separate High Court case, Mr Wood and Rockrohan had failed in their challenge to an order requiring the sale of that particular land lot to pay off a debt by them (Wood and the company) to Ulster Investment Bank, the McCarthys said.
As a result, that particular land lot needed to be sold.
The McCarthys claimed the defendant companies sought to withdraw from the agreement and failed to complete the sale of the first instalment of the art and furniture and the sale of one of the three lots of land.
Rockrohan and Barryscourt denied the claims, including that the McCarthys agreed to buy the art and furniture collection.
In a statement later yesterday, the McCarthys said they had already donated to the Irish Heritage Trust €2.65 million worth of the art and furniture and yesterday’s settlement meant the balance of the collection, comprising 57 paintings and 42 pieces of furniture worth €3.4 million, would now also be donated by them and put on display in Fota House.