Thursday 18 October 2018

Furniture supplier hit by Sammon/Carillion collapse sues school builder over alleged non-payment

The site of Ravenswell primary school and Coláiste Ráithín in Bray
The site of Ravenswell primary school and Coláiste Ráithín in Bray

Aodhan O'Faolain & Ray Managh

A company which claims it has not been paid for supplying furniture to two new schools has launched High Court proceedings against the joint venture charged with constructing the buildings.

The action has been brought by G Morgan & Sons Limited against Inspiredspaces Bundle 5 (Ireland) Ltd, the entity that secured the contract from the State to build five schools and one further college of Education in counties Meath, Wexford, Carlow and Wicklow.

In its action, G Morgan & Sons seeks various declarations and orders including that it is entitled to the interest in the furniture it has supplied to two of the schools and is entitled to possession of the items.

The Drogheda based company, which employs nine people, said it entered into an arrangement with the main contractor building the schools Sammon Contracting to supply furniture to the five schools it was building.

Sammon was engaged by Inspiredspaces Bundle 5 (Ireland) Ltd, which was a joint venture consisting of the UK firm Carillion, which collapsed earlier this year into administration, and the Dutch Infrastructure Fund (DIFCO).

Carillion's collapse resulted in Sammon going into liquidation.

G Morgan, represented by Louis Entagart SC, told the High Court on Thursday that last December it provided the furniture to two of the schools,  Loreto College in Wexford and Colaiste Raithin, Bray Co Wicklow.

It was to receive €196,000 for the furniture, but that payment was never made.

Sammon Contracting went into examinership in April and was wound up in June.

Counsel said it has asked for the items to be returned or that the items are paid for.

Counsel said InspiredSpaces has declined to do this, adding that the non-payment has caused his client serious cash flow difficulties.

Counsel said that in the interim his client seeks an injunction that the defendant does not make any use of the furniture it has supplied, which would remain in place until the dispute has been decided by the court.

The reason for this counsel said was the once the furniture is used it is deemed second hand and greatly depreciates in value.

The case came before Ms Justice Miriam O'Regan, who granted G Morgan permission to serve short notice of the proceedings on Inspiredspaces.

The Judge made the matter returnable to a date later this month. 

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