Reilly being sued over alleged contract to buy nursing home
Published 26/07/2011 | 05:00
HEALTH Minister James Reilly is among five people being sued by eight others in connection with an alleged contract to buy a nursing home.
It is claimed Dr Reilly and and Fine Gael councillor Anne Devitt got involved with the plaintiffs and defendants in the Greenhills nursing home in Carrick-on-Suir in Tipperary as a "tax efficient investment".
The 54-bed home began operating in 2001 and is described as "a commercial success".
The plaintiffs claim that, following an agreement of November 2000, Dr Reilly, Ms Devitt and three others are now required to buy the home for €1.905m, plus VAT.
It is claimed notices served in April and May last required that agreement to be performed but those notices have expired.
The proceedings were transferred to the Commercial Court list yesterday by Mr Justice Peter Kelly but were adjourned to facilitate mediation.
The plaintiffs are seeking orders requiring the defendants to honour contracts allegedly created in April 2011 on foot of option agreements of November 2000 to buy the plaintiffs' interests in Greenhills nursing home.
The plaintiffs also want a declaration that the defendants are obliged to keep them indemnified against any claim by Bank of Ireland in connection with the property.
In an affidavit, plaintiff Orla Higgins said Dr Dilip Jondhale had promoted the development of a residential care facility for elderly persons as a tax efficient investment in 2000.
She said all the parties were interested in becoming involved in a suitable tax efficient investment. She said Paul Kelly in November 2000 transferred to the plaintiffs and other defendants an interest in a portion of property at Greenhills, Co Tipperary, on which the home was to be built, for shares of €55,000.