Friday 20 September 2019

Dublin developer sues his best man over €500,000 investment loan

Aodhan O Faolain and Ray Managh

A DISPUTE between a property developer and a former business partner who was his best man and the godfather of one of his children is set to be thrashed out in the High Court.

Well-known Dublin developer David Agar (pictured) is seeking High Court orders against his former Westmeath business partner George Tracey in a row over the ownership of stock in an investment fund.

The dispute arises out of a €500,000 loan Mr Agar claims he gave to Mr Tracey to allow him take part in an investment fund launched by AIB private banking, called the Alpha Japan Fund, which focused on the Japanese property market.

Mr Agar alleges that the loan was never repaid. Late last year the fund was due to pay a return to investors, which, it is claimed, in Mr Tracey's case was some €62,000. Mr Agar claims that those monies should be paid to him.

Last month, Mr Agar's lawyers secured temporary High Court injunctions against Mr Tracey, AIB plc, AIB Alpha Japan Fund Pte Ltd, restraining the bank from paying any returns due from the fund to Mr Tracey.

The injunctions were granted on an ex-parte basis by Mr Justice Roderick Murphy.

At the High Court yesterday, Mr Justice Murphy continued the injunctions previously granted by the court.

David Dodd BL, for Mr Agar, told the court that it had been agreed with Mr Tracey's lawyers that the matter should be put back to allow Mr Tracey reply to Mr Agar's claims.

James Doherty BL, for AIB, said the bank did not want to be caught in the middle of a dispute between the two businessmen, and was happy to comply with any orders made by the court.

Mr Justice Murphy made the matter returnable to a date in two weeks' time.

Mr Agar claims he is the true and beneficial owner of all the loan stock and all other interests in the fund registered in Mr Tracey's name.

Mr Agar is seeking various orders and declarations including that any sums payable from the fund to Mr Tracey be paid to him instead.

He also wants the court to order Mr Tracey, of Mearscourt House, Mullingar, Co Westmeath, to complete a deed transferring the legal ownership of the loan stock in the fund to Mr Agar.

In an affidavit seeking the injunction, Mr Agar, of The Mall, Beacon Court, Sandyford, Dublin said that he invested €1m in the fund, which focused on the Japanese real estate market, in April 2007.


Mr Agar said that Mr Tracey also wished to invest in the fund, but at the time lacked the finances required to get involved. Mr Agar said that out of his €1m he agreed to loan Mr Tracey €500,000 so he could also invest in the fund.

Mr Agar said the money was loaned on the clear understanding that Mr Tracey would discharge the loan.

As well as being his business partner for many years, Mr Tracey was Mr Agar's best man and was godfather to one of his children. However, Mr Agar said that despite promising to do so Mr Tracey had failed to pay him back.

Irish Independent

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