A businesswoman has claimed before the High Court that €1 million from a firm she owns jointly with her husband has been used, “in breach of company law”, to buy and renovate a hotel that is being used to house Ukrainian refugees.
The action has been brought by Co Wexford-based Yvonne Treacy, who is a director and 50 per cent shareholder of Combray Limited, which owns and operates the Enniscorthy Hotel & Slaney Suites in Co Wexford.
She is seeking permission from the High Court to bring an action, known as a derivative action, on Combray’s behalf against her husband Anton Treacy, who owns the other 50 per cent of Combray, and other parties over the purchase and refurbishment of the Golf Hotel in Ballybunion, Co Kerry.
Mr Treacy is the son of well-known Waterford-based hotelier Jim Treacy, whose family own and operate several hotels around Ireland.
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The action initiated by her is also against Blackoak Ltd and Timbertoes Unlimited, which were allegedly involved in the acquisition of and refurbishment of the hotel, and Edward Keena, who the court heard is Anton Treacy’s brother-in-law and a registered half-owner of the Golf Hotel.
She claims that without her consent or permission, approximately €1 million of Combray’s money was used to purchase and refurbish the Ballybunion hotel.
The court heard she has been informed the money from Combray will be repaid. She claims Combray has “a strong beneficial claim” to ownership of 50 per cent of the Co Kerry hotel and the profits it generates.
"We have a fundamental misunderstanding of our housing need."
The Kerry hotel is allegedly in receipt of “a very significant income and profits”, estimated to be more than €490,000 per month, under the Housing Standard Accommodation Recognition Payment Scheme, for housing refugees from Ukraine.
She wants to bring proceedings on Combray’s behalf seeking various orders and declarations including that Combray is the beneficial owner of any legal claim made by Anton Treacy in connection with the Golf Hotel.
Damages and declarations including that Combray is the beneficial owner of profits made from the purchase and renovation of the hotel are also being sought. Any money withdrawn from the company and spent on the hotel is also being sought.
Represented by Gary McCarthy SC, with Arthur Cunningham BL, Ms Treacy claims Combray contributed half the purchase and refurbishment costs generated by the Co Kerry hotel.
Counsel said it appears that the monies have been withdrawn from Combray over the last 12 months.
The funding was provided from Combray in breach of the 2014 Companies Acts and amounts to a breach of the fiduciary duty owed by her estranged husband’s to the firm, counsel said.
The court heard Ms Treacy claims the Golf Hotel is currently owned by Anton Treacy and Edward Keena on trust for Blackoak. Blackoak, she claims, is owned by two of Mr Treacy’s brothers.
She further alleges the ownership of Blackoak is to be transferred to Timbertoes Unlimited Company, which she also alleges is controlled by the Treacy family.
She fears some of the profits generated by the Co Kerry hotel may be used to reduce her husband’s indebtedness to parties including financial institutions.
Her concerns have been heightened arising out of the couple’s separation following the breakdown of their marriage earlier this year.
She claims requests she has made to Anton Treacy for a full account of any and all funds taken from Combray have not been addressed properly.
She says she initiated High Court proceedings because of an alleged failure by Anton Treacy to provide her solicitor with certain undertakings.
The case came before Mr Justice Brian O’Moore on an ex parte basis (only the plaintiff was represented) on Wednesday.
The judge granted the applicant permission to serve short notice to the respondents of her application seeking permission to bring proceedings on Combray’s behalf.
The matter will return to court later this month.
