Dublin firm is claiming €9.7m over alleged breach of contract on a loan for London project
A DUBLIN firm is claiming €9.7m - including €7.5m in interest - over alleged breach of contract on a loan for a building project in London.
D&L Properties Ltd is seeking the money from a Channel Islands-registered company which allegedly failed to repay monies loaned to it so a theatre and apartments in Palace Street, London, could be completed.
D&L has brought the case against Yolanda Ltd which was allegedly advanced €2.2m as part of an agreement, made in November 2008, for the London project.
D&L, with an address Oakmount, Torquay Road, Foxrock, claims the monies, including the interest, were not repaid and the defendant converted the money for its own use.
The matter came before Mr Justice Brian Cregan, who on agreed to have the case admitted to the fast-track Commercial Court list.
Paul Coughlan BL, for Yolanda, said his client intends to bring an application to have the claim dismissed.
In its claim, D&L says monies were advanced in a deal which constituted a joint venture type agreement.
As part of the agreement, in November 2008, Yolanda was advanced €2.2m from the bank account of businessman Derek O'Leary and his wife Linda, both also of Oakmount, Torquay Road.
The investment, it is claimed, was structured on the basis Yolanda would pay a minimum interest of 20 per cent year on sums drawn down for a period of 12 months.
After that, a rate of two per cent on sums drawn down and anything that remained outstanding was to be paid.
The agreement also provided for D&L acquiring a 12.5 per cent shareholding in Elgin Ltd, the Channel Island's registered parent company of Yolanda.
It was also agreed D&L was to receive a second charge on the development lands as security plus st£2,000 for each day Derek O'Leary attended at the project.
It is claimed the defendant sold the apartments and has taken the proceeds without accounting to D&L for them or repaying the monies allegedly owed.
It is claimed the €2.2m has never been repaid and interest currently standing at €7.5m is continuing.
Counsel for D&L told the court his client is continuing to suffer loss, damage and inconvenience.
Counsel said the matter had originally come before a court in the Channel Islands. However it had directed that the case be determined by the Irish courts.
In an affidavit, Mr O'Leary, on behalf of D&L, said the project would have failed had it not been for the monies advanced by it.
He believes 38 of the apartments in the London development were sold for between st£60/70m. However he said that he could not get any information from the defendant.
Mr Justice Cregan adjourned the matter for two weeks.