A legal dispute between developers over property valued at some €27 million on Dublin's Shrewsbury Road has opened before the High Court.
Rivertree Property Developments Ltd has brought an action against developer Tom McFeely, a former IRA hunger striker, and Nina McFeely. The company is effectively seeking specific performance of an alleged contract for the sale of two Shrewsbury Road properties for some €27 million. The case opened yesterday before Mr Justice Iarfhlaith O'Neill and continues today.
Rivertree claims a contract of sale was made in March 2004 between the McFeelys and solicitors Arthur Cox, acting in trust for Rivertree, which in turn was a nominee for a purchaser.
It is claimed Rivertree agreed to buy 3 Shrewsbury Road for €6.2 million, the closing date was to be June 25th, 2004, and a deposit of €625,000 was paid to the McFeelys. At all times, Arthur Cox Solicitors had acted in trust for and on the instructions of the purchaser for whom Rivertree was acting as a nominee, it was stated.
It is claimed that the balance of the purchase price was paid on June 25th, 2004, along with €2,737 costs arising from the acquisition by the McFeelys of the superior leasehold interest and the freehold interest in the property.
An application for planning permission to build apartments on the site of 3 Shrewsbury Road and 1 Shrewsbury Road was made but was unsuccessful, Rivertree said. It claims that, on September 22nd, 2006, financier Derek Quinlan agreed to buy 3 and 1 Shrewsbury Road for a purchase price of €27 million and paid €2.7 million as a deposit. Completion of the sale, it claims, was due to take place on October 23rd last.
However, it is claimed the McFeelys have wrongfully and in breach of contract failed, neglected and refused to complete the sale of the premises by the execution of a deed of conveyance and assignment in favour of Derek Quinlan at the direction of Rivertree.
Rivertree claims that it has suffered and continues to suffer loss, damage and inconvenience.