A woman claimed in the High Court yesterday that she was entitled to exercise an option to buy Bartragh Island, off the Co Mayo coast, which international golfer Nick Faldo reportedly bought last week for Stg£2.5 million.
Mr Dan O'Keeffe SC, for Ms Mary Molloy, a psychotherapist and psychologist, Quay Road, Killala, Co Mayo, said it appeared that Mr Seán Simon, of Deerpark, Loughrea, Boyle, Co Roscommon, who claims ownership of the island, was in negotiation with Mr Faldo or his companies on giving Mr Faldo an option to buy.
Mr O'Keeffe told Ms Justice Carroll: "As we understand it, that was never perfected."
Mr O'Keeffe said his client lived in London and Ballina and was seeking performance of an option agreement which she had entered into on November 8th, 1996, under which she was granted an option by Mr Simon to buy Bartragh and other adjacent islands.
Ms Molloy had been the original owner of the 367-acre island. She bought the lands in 1989 and had intended locating an institute for biodynamic therapy in which she was engaged.
She had partly funded the venture herself. The island had a 25-bedroom house on which she spent money. However, she failed to attract venture capital finance for her project and fell into arrears with the Irish Permanent.
Proceedings were taken against her and the Irish Permanent put the property out to tender. The highest offer was IR£280,000. She had paid Stg£100,000 for it. As a result of the low offer - she had been advised the value was between IR£800,000 and IR£1.2 million - she instituted proceedings against the Irish Permanent for breach of fiduciary duty but these were not pursued.
In order to discharge her debt to the Irish Permanent, she was introduced to Mr Simon, who was to provide funds so that a deal could be done with the building society, counsel said. The net effect of that deal was incorporated into an option agreement which was the subject of the action before the High Court.
Mr O'Keeffe said that, under the agreement, Mr Simon was to provide IR£290,000 to buy the property. Ms Molloy was given the option to buy it back within 90 days on the basis of her paying back the IR£290,000, stamp duty, other expenses and an additional IR£100,000.
It was also provided, in default of her exercising that option, that Mr Simon would sell the property and that, on sale and following all deductions, the balance would be divided: 80 per cent to Mr Simon and 20 per cent to Ms Molloy.
There was also a provision that once the sale between the Irish Permanent and Mr Simon was implemented, Mr Simon would pay Ms Molloy IR£25,000 for using her good offices to secure the sale. Mr O'Keeffe said his client claimed the sale to Mr Simon was completed on May 2nd, 1997, from which the 90-day period began. Her solicitor had later written to Mr Simon's solicitor exercising her option but Mr Simon took the view that the period had lapsed. Ms Molloy's solicitor claimed that was the fault of Mr Simon's solicitors.
Counsel said Ms Molloy would claim that in July 1997 she had made contact with a Swiss financial house, VTZ, and had been assured Stg£500,000 was available to her. She would claim she was ready, willing and able to exercise her option had the contract for sale been tendered to her by Mr Simon's solicitors.
However, she then heard that Mr Simon was trying to sell the property himself and that had triggered her into issuing the current proceedings in 1997.
Mr Simon claims that Ms Molloy entered into an agreement under which, if she exercised her option, 10 per cent of the purchase price would be paid to him within two weeks. In default of that, the option would lapse. No contract had been delivered and the deposit had not been tendered. He also denies that Ms Molloy's option remained enforceable and claims she had no access to funds amounting to about IR£400,000.
He says he successfully bought the lands from the Irish Permanent and that purchase was completed on April 29th, 1997. The option was exercisable on or before July 28th, 1997, he contends. His solicitors received a letter purporting to exercise the option which was dated July 29th, 1997, and received by his solicitors on July 30th, 1997. The hearing, before Ms Justice Carroll, continues today.
