A dispute between hotelier siblings over proceeds of the 2016 sale of the Beacon Court Hotel in Dublin has been entered into the fast-track Commercial Court list.
Patrick Fitzpatrick is suing his brother Paul Fitzpatrick, claiming he holds 12.5pc of the sale proceeds, estimated at €3.75m, on trust for him under an agreement made in May 2011.
He alleges the Sandyford hotel was sold in 2016 for approximately €30m, and he is seeking, among other things, a court order for the restitution of the monies he claims to be owed.
Paul Fitzpatrick, currently living in Beverly Hills, California, sought entry of the proceedings to the fast-track Commercial Court list yesterday.
In an affidavit, he claims his brother has failed to provide any meaningful details of the facts grounding the action. He said it is his intention to bring an application for the dismissal of the proceedings on grounds that they fail to disclose a reasonable cause of action and/or are frivolous and vexatious.
He claims he is concerned the case may be an abuse of process in that the plaintiff has “no genuine belief” in the merits of the case.
He said he and his brother were some years ago shareholders, along with two others, in Pinnacle Properties Limited, which formerly owned the hotel. He claimed the company ceased to hold any interest in the hotel as long ago as 2013.
He said the plaintiff appears to “mistakenly contend” that his former 12.5pc interest in that company entitles him to a share in the 2016 sale proceeds.
However, Paul Fitzpatrick claims a receiver was appointed in 2012 over the interests of Pinnacle and a group of tax investors in the hotel.
Paul Fitzpatrick claims the 2013 transaction proceeded by way of asset transfer and not a share sale, meaning that Pinnacle then ceased to have any interest in the hotel.