A Dublin businessman has secured a judgment of just less than €1.4 million against his business partner over a dispute relating to the sale of a 40 per cent stake in a site in the centre of Las Vegas.
Gerard May, of Saggart, Co Dublin, obtained the judgment against Paddy O'Connor, a director of Melbury Developments, after Mr O'Connor failed to pay him $2 million (€1.39 million) for his 40 per cent stake in a site on S Maryland Parkway, a short distance from The Strip, the main avenue in Las Vegas.
Mr May reached an agreement with Mr O'Connor on July 17th, 2007, to sell his stake in the site for $2 million, to be paid on or before October 31st, 2007. Mr May sued his partner after he failed to pay the agreed amount.
Mr Justice Peter Kelly granted judgment for €1.39 million and backdated the interest on the amount to November 1st last.
Mr May told the court in an affidavit that his brother had found the site when a bank was about to foreclose on it. Mr May initially tried to buy the property himself, but in 2006 asked Mr O'Connor for assistance. The property was purchased for $5 million and both men saw it as a potentially lucrative commercial venture.
Mr O'Connor claimed that he was unable to pay Mr May the €1.39 million because he was unable to sell 34 apartments at his development, Swiftwood in Saggart, which, he claimed, Mr May had agreed to sell on a commission basis.
Mr O'Connor said he had made loans of €1.6 million to Melbury and that he could have repaid Melbury's lender, Ulster Bank, and the loans he had provided to his company, if the apartments had sold by the end of September.
He claimed he did not understand the July 17th agreement, which, he said, was entered into on the basis that the 34 units would be sold. Mr May rejected this, saying the sale of apartments had nothing to do with the Las Vegas agreement and claimed the apartments had not sold in time due to "delay and default on the part of Melbury".
Mr O'Connor said he was making every effort to sell the Las Vegas site and the apartments.
