THE operations director of Irish Tatler Publications told the High Court yesterday he did not believe Hugh Leonard could have been in any doubt as to who owned the company, when he informed him in early 1992 that the company was to be liquidated.
Mr Aiden Treacy was giving evidence on the third day of the libel action by Ms Noelle Campbell Sharpe against the Sunday Independent and Mr Leonard following an article in his column in the newspaper on April 26th, 1992. It is claimed the article incorrectly stated: "Ms Campbell Sharpe's company went to the wall owing me £5,000 for services rendered."
When the hearing opened last Tuesday, Mr Rex Mackey SC, for Ms Campbell Sharpe, said at the time, a Maxwell Group company owned ITP and his client had sold her shareholdings to them by agreements in 1989 and 1991.
Ms Campbell Sharpe, in her evidence last Wednesday, said after transferring her 49 per cent shareholding in 1991, there was an agreement that she was to act as a consultant to Maxwell Irish Tatler Publications.
Maxwell came up with the idea of an Irish hotels and restaurants guide. She felt she could identify somebody who had a very fine reputation writing on cuisine - Mr Leonard. The payment she recommended for the guide was £10,000 to £5,000 on publication and £5,000 30 days later.
She thought the £5,000 Mr Leonard had received for three articles to be very generous. She did not know at the time a clause had been inserted, contrary to what she had proposed, which in the event of non publication would allow Mr Leonard the whole £10,000.
Yesterday, Mr Treacy told Mr Justice Geoghegan and a jury that the signature on the agreement with Mr Leonard in respect of the hotels and restaurants guide was his. His status was as director of operations with ITP. He was employed with Maxwell Consumer Publishing and Communications Ltd and based in Dublin.
He agreed that prior to the agreement being executed, there had been proposals for the guide prepared by Ms Campbell Sharpe with his assistance. They related to the preparation and authorship of the guide.
The general procedure in relation to something like the guide was that it was sanctioned by the UK company. New business was discussed at board meetings with Maxwell in the UK. Mr Eddie Thomas - in the UK - was managing director for a group of publications, including ITP. Decisions would be made by Mr Thomas.
At a previous board meeting, the idea for the Irish guide had been put forward by Mr Thomas. Ms Campbell Sharpe and he [Mr Treacy] had listened to the idea and thought it a good proposal. It was left to Ms Camphell Sharpe to identify how the basic structure would be put together. He [Mr Treacy] did costings.
He met Mr Leonard on February 27th, 1991, the day the agreement was signed. The agreement said that in the event of non publication, the publisher agreed a payment of £10,000 became due. Mr Treacy said he spoke to Mr Leonard on January 24th, 1992. There had been a directors' meeting and it had been agreed ITP would be put into liquidation on February 3rd. He advised staff and clients that Maxwell Communications Corporation was under administration in the UK. Maxwell Consumers Publishing and Communications was a major creditor of ITP. It was the administrator who decided to put ITP into liquidation. He explained to Mr Leonard what was going to happen.
Mr Leonard asked during the conversation about the second £5,000. He [Mr Treacy] said he did not know and that the liquidator would make decisions.
Under cross examination by Mr Frank Clarke SC, for the defence, Mr Treacy agreed he was not the person who told Mr Leonard to go ahead and write the articles.
Mr Clarke said that at the beginning of 1992, the person dealing with Mr Leonard on behalf of ITP was Ms Campbell Sharpe. Mr Treacy said that on an ongoing basis, she was the point of contact. He [Mr Treacy] was the point of contact when he signed the contract.