Mr Kevin Duffy, managing director of the auctioneers Duffy Mangan Butler, told the tribunal that in early 1989 Mr James Gogarty asked him to carry out a valuation of the lands set out in the terms of reference, six plots in north county Dublin. Mr Gogarty basically asked him to give an opinion of the open market price on the various holdings. He told him Mr Murphy snr was considering selling off all or some of the lands.
The witness said he estimated the total value of the lands then at £3.2 million. He recommended that some should be sold and some retained and considered the further development potential in the various sections. He sent a report to Mr Gogarty.
In a letter dated June 8th, 1989, Mr Gogarty wrote to Mr Fred Duffy saying Mr Murphy snr was anxious to realise the early disposal of the properties. Mr Duffy said to him the letter meant he was willing to discount the development potential of the lands for a quick sale.
Mr Pat Hanratty SC for the tribunal, asked if he was asked to value the lands at agricultural value albeit they had development potential. Mr Duffy replied he was. As a result, the price was set at £3,000 an acre, which reflected the agricultural value for the entire holding. There was a meeting on November 27th, 1989, attended by Mr Michael Bailey, Mr Tom Bailey, and Mr Fred Duffy. Mr Kevin Duffy said he thought he was there at some stage. Through Mr Gogarty and his uncle, a deal was worked out. The lands were sold for £2.3 million to the Baileys, who put down a deposit of £2,300.
Mr Hanratty asked if Mr Gogarty wrote to him before this, on November 6th, 1989, asking Mr Duffy to suspend negotiations. Mr Duffy said basically he took from this that either Mr Gogarty or Mr Murphy snr were having second thoughts about the sale.
His uncle had dealt with it. He did not recall discussing it with Mr Gogarty, nor did he think they did anything at that stage. They were waiting for Mr Gogarty to issue further instructions.