Building firm claims Crosbie owes it €3m for theatre job
A CONSTRUCTION company claims businessman Harry Crosbie owes it €3m after the development of Dublin's new Grand Canal Theatre.
Ramford Ltd, a company controlled by developer Joseph O'Reilly, has brought proceedings arising from an agreement on June 29, 2007, between the company and Mr Crosbie to develop the 2,000-seat theatre.
O2 co-owner Mr Crosbie also owns the lease of the theatre, which opened in March.
The proceedings opened yesterday before Ms Justice Mary Irvine. Ramford contended it was entitled to rely on the express terms of the contract.
The primary disagreement was about what had factually occurred at meetings between the sides, the firm said.
Ramford claimed it was to design and construct the venue and to ensure various theatre works were designed, carried out and completed.
It claimed Mr Crosbie undertook to furnish a contract sum of €10m on completion and to discharge amounts paid by Ramford for fixtures, fittings and equipment (FF&E).
It is claimed that it was agreed that, if the costs of the FF&E exceeded €6.5m, Mr Crosbie would pay the balance.
It is also claimed the agreement provided for any dispute to be referred to an independent professional for determination.
Ramford claims it spent €9.4m on FF&E, with the dispute arising over €2.9m of that.
Ramford claims it sought to have the matter dealt with by an independent professional. Mr Crosbie maintained the dispute was not appropriate for determination independently.
The court heard he asked Ramford not to nominate an independent professional unless it had a declaratory order from the High Court.
The president of the Law Society, on the application of Ramford, had nominated John Gore-Grimes last December but Mr Crosbie did not accept that nomination. The case continues.