Sunday 25 August 2019

Dunnes Stores ordered to pay €15.5m over tenancy deal

Harry Crosbie. Photo: David Conachy
Harry Crosbie. Photo: David Conachy

Tim Healy

A High Court judge has ruled Dunnes Stores must pay €15.5m "forthwith" to the receivers of a company of businessman Harry Crosbie to comply with agreed terms of settlement of a legal dispute concerning the planned Point Village development.

The receivers claimed the money is due under a 2010 settlement between Dunnes and Point Village Development Ltd (PVD) negotiated by Mr Crosbie before Nama appointed joint receivers over the company in 2013 on foot of a €450m debt.

PVD brought proceedings in 2009 alleging Dunnes had failed to honour a 2008 agreement, under which it was to become the anchor tenant in the shopping centre.

Dunnes denied the claims and counter-claimed that PVD had not complied with part of the agreement.

The case was settled at the High Court in 2010 but further disputes arose and the sides later negotiated supplemental terms of settlement.

The 2010 settlement released PVD from obligations to construct an "iconic" 39-storey Watchtower and a Spine Building intended to house a U2 museum, Ms Justice Caroline Costello noted. The agreement also reduced a €46m sum Dunnes had contracted to pay for the site to €31m, with the latter sum placed in a nominated account, she said. Dunnes paid PVD some €11.8m from the nominated account in late 2010 but made no further payments.

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