Sunday 19 November 2017

Reilly faces new day in court over nursing home deal gone sour

James Reilly
James Reilly

Fiach Kelly and  Dearbhail McDonald

HEALTH Minister James Reilly faces another court date next week over an investment that went sour and saw him named on a debt defaulters' list.

The latest court appearance comes only days after Dr Reilly settled a separate dispute involving an investment in an abandoned health project.

The minster and two former business partners yesterday settled an alleged unpaid debt in relation to a planned private medical centre in his native north Dublin, but another of his investments will come before the courts next week.

The Dublin North TD is also trying to resolve the fallout from an investment in a Tipperary nursing home deal that went sour and saw him appear in 'Stubbs Gazette'.

In an unprecedented development, he was named last year in an edition of the debt-monitoring magazine.

Dr Reilly appeared in 'Stubbs Gazette' after the High Court ordered him and four others to pay €1.9m to buy the Greenhill Nursing Home in Carrick-on-Suir, Co Tipperary, which they had first invested in 13 years ago. The minister has insisted he will pay his share of the bill, and efforts to reach a settlement are currently being made.

A spokesman for Dr Reilly said the minister had handed over dealings regarding the Tipperary nursing home to a lawyer with power of attorney, and said the case also involved other co-investors.

"Lawyers are dealing with the matter," the spokesman said. The High Court has previously heard Dr Reilly is willing to sell his share.

The process could be completed as early as Monday, when the matter will come before the High Court, but sources close to the parties say this is unlikely, and a date later in the year is more realistic.

Dr Reilly yesterday settled an alleged unpaid debt in relation to a planned private medical centre in Swords, Co Dublin. He was being jointly sued, along with his business partners, by a firm of architects for €100,000 for work that was carried out for the proposed Airside Clinic.

Project Management Limited, trading as PM Group, was hired in 2007 to draw up plans for the multi-million euro, four-storey private medical centre, on which work never began, despite planning permission having been granted.

The minister, who previously denied that he owed Project Management Limited any money, was not present in the High Court when the matter came before Mr Justice Paul Gilligan.

The terms of the settlement are confidential, the High Court was told. However, it is understood that PM Group was happy with the offer it received, indicating that it could be nearer to the sum of the outstanding bill than the company had initially expected.

Outside court, it emerged that there will be a one-off payment due by October 5 and that will conclude the matter.

If the settlement is not paid by then, Dr Reilly and the others could have a judgment entered against them – which would mean he might appear in Stubbs again. However, this is seen also seen as unlikely.

Irish Independent

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