A DECISION on a proposal to set up a trust fund for 550 Dublin homeowners suing over structural damages to their houses has been adjourned until January 20th, to allow residents who have not yet voted more time to consider the proposal.
The case, which is one of the longest-running cases to come before the Commercial Court, arose out of a dispute between housing firm Menolly Homes, now a client of Nama, and Irish Asphalt, part of the Lagan group.
Menolly has blamed structural defects in houses in four Dublin estates on the presence of the mineral pyrite – which swells when it comes into contact with water – in the houses’ foundations. However, Irish Asphalt, which supplied the infill, denies this, blaming faulty construction for the defects.
A settlement was reached by the two companies through mediation in November without admission of liability. This resulted in the proposed €25.5 million trust fund to carry out repairs to the affected properties. However, this is dependent on the agreement of 85 per cent of householders.
Under the settlement homeowners would get up to €3,000 for new floor coverings, €3,000 for legal costs, €2,000 for alternative accommodation while work is being carried out and €2,000 compensation for inconvenience caused.
Brian O’Moore SC, for Menolly Homes, said that of the 550 homeowners, 385 had directed their solicitor of their positions. Of that cohort 347 had endorsed the deal, while 38 had gone against it. A further 165 homeowners have not yet indicated their position.
He said that when those who had thus far abstained from voting were taken into account, 63 per cent of the 550 households had approved the proposal.
He said he understood from solicitors firms Lavelle Coleman and Arthur Cox, which represent a large proportion of the homeowners, that the outstanding residents would like extra time to consider the proposal, adding that his client had “no objection to a limited period of time, say a week or thereabouts, to be provided”.
Mr Justice Gilligan said that the court noted “with disappointment that despite two deadlines being imposed the voting by a number of homeowners has not yet been concluded”.