Wednesday 21 March 2018

McKillen faces €5.5m bill for Quinlan's legal costs

Paddy McKillen
Paddy McKillen

Shane Hickey London

Developer Paddy McKillen must pay almost €5.5m to financier Derek Quinlan for legal costs over his marathon failed court action over the ownership of three high-profile London hotels.

Legal representatives from both sides yesterday told a High Court taxing master during a brief hearing that they had agreed the figure.

The ongoing battle for the control of Coroin, which runs Claridges, the Connaught and the Berkeley, resulted in a lengthy battle in the High Court in London, which Mr McKillen eventually lost.

Judge David Richards ruled in August 2012 against Mr McKillen, after he had sued David and Frederick Barclay, the owners of the Telegraph media group, over their attempts to take over Coroin.

The total costs for the Quinlan side amounted to £4,175,084 (€5,051,776) while an additional £332,472 has to be paid in interest accrued. The final total amounts to £4,507,556 (€5,446,728).

The final costs certificate details that £1,519,000 has already been paid, while the rest must be paid within 14 days.

It had been estimated that the total bill for the failed legal action would amount to €26m for Mr McKillen.

He challenged the decision in the Court of Appeal but the case was dismissed last July. It emerged last month that his bill to the Barclay brothers was more than €9.2m.

Mr McKillen owns 36.2pc of Coroin and the Barclays 28.36pc. Financier Derek Quinlan's share of 35.5pc is in the control of the Barclays after the brothers secured the shareholding from NAMA.

He had claimed that Mr Quinlan's share should have been offered to him under a clause in the shareholders' agreement of the company – a pre-emption agreement.

Most of the proceedings against the Barclays camp were dismissed.

The judge said there had been no agreements made between the Barclays and Mr Quinlan which breached the pre-emption provisions.

Irish Independent

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