Hotel partners claim agreement not honoured

Former model and boutique owner Ms Jackie Lavin was at the High Court yesterday for the hearing of a dispute between two former…

Former model and boutique owner Ms Jackie Lavin was at the High Court yesterday for the hearing of a dispute between two former partners of a Co Kerry hotel.

Retired German businessman Mr Arnfried Meyer and Muckross Park Hotel Ltd (MPH), of Muckross Road, Killarney, have taken proceedings against Mr Raymond Kelliher, an accountant, also of Muckross Road, Killarney; and Carronna Ltd, with a registered office at Douglas, Isle of Man.

Ms Lavin is described in the statement of claim as a director of MPH and was accompanied in court by her partner, Mr Bill Cullen. Mr Meyer and MPH are seeking a declaration that the defendants are bound by an agreement claimed to have been made between them and the plaintiffs in June 1999 and an injunction directing them to comply with it.

In proceedings in March 1999, Mr Meyer is claimed to have secured summary judgment for £181,094 against Mr Kelliher, with the balance of the claim in relation to compound interest being returned to the High Court for hearing.

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Separate proceedings were started by Carronna Ltd - an Isle of Man company beneficially owned or controlled by Mr Kelliher - against MPH, Ms Lavin and another MPH director, Mr Michael Moriarty, in relation to Carronna's shareholding in the hotel company.

With a view to resolving all outstanding difficulties between the parties, negotiations took place between solicitors acting for Mr Meyer and MPH and for Mr Kelliher and Carronna Ltd.

It is claimed an agreement was reached and, the plaintiffs allege, Mr Kelliher and Carronna have failed or refused to execute their obligations under the agreement.

As a result, it is claimed, Mr Meyer had been unable to regularise his shareholding in MPH and had been obliged to make capital advances to MPH while these issues remained unsolved.

He was also unable to realise the value of his shareholding.

The defence denies the claim or that the plaintiffs suffered loss and damage. It is denied that Mr Kelliher controls Carronna Ltd.

The defence admits that the negotiations took place and that their purpose was to come to a final and concluded agreement to resolve all issues between the parties but denies that the solicitor had authority to conclude an agreement. The hearing before Mr Justice O'Neill continues today.