Mediation has failed to resolve a dispute between two groups over an alleged breach of an agreement to divide up the assets of joint ventures they had owned including the Ibis Red Cow Hotel in Dublin.
The row is between Duddy Hospitality Ireland Holdings Limited, Brendan Duddy and Lawrence Duddy, which are all part of the Duddy Group, and Propiteer Ireland Holdings Limited, DADAC Ltd, Propiteer Ltd, Colin Sandy David Marshall, which are all part of the Propiteer group.
The court heard the two groups had been partners in several joint ventures, including the Ibis Red Cow Hotel, a hotel in Exeter England, and developments in Dublin and Belfast.
After differences emerged between them in 2019 it was decided to divide up the shared assets and go their separate ways.
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It is claimed that in 2020 the two groups entered into settlement agreements regarding the various assets they had jointly held.
The Duddy group claims that, as part of those arrangements, it would get ownership and control of the Ibis Red Cow Hotel and related companies.
Earlier this year the Duddy group launched High Court proceedings alleging the Propiteer group has breached the settlement agreements. It sought various injunctions against the defendants.
The claims are denied.
When the matter came before Mr Justice Mark Sanfey on Thursday, Neal Flynn BL, instructed by Flynn O’Driscoll LLP solicitors, for the Duddy Group, said a recent out-of-court mediation between the parties designed to resolve the row had not been successful.
The court was asked to put in place a timetable for the exchange of legal documents with the aim of getting a date for the hearing of the plaintiffs’ application for various injunctions.
The judge agreed to adjourn the matter, with various undertakings offered by the Propiteer defendants to remain in place, to a date later this month.
The Duddy Group claims in its proceedings that the defendant group attempted to remove directors from the boards of two companies associated with the hotel and had been seeking to replace them with their own nominees.
The plaintiffs say the defendants are not entitled to do this and sought court orders preventing any changes to the companies’ boards.
The Duddy Group alleges the defendants “regret” allowing it to acquire the hotel after seeing how well it has been performing.
In their action, the plaintiffs seeks various orders including injunctions preventing any alteration to the boards of, or the removal of any directors of, companies involved in the running of the Ibis Red Cow Hotel.
The Duddy Group seeks an order for the specific performance of the agreements allegedly entered into by the parties in 2020.
The Duddy group further seeks orders preventing insolvency practitioners Ken Fennell and Andrew O’Leary, of Interpath Ireland, from acting as receivers of the assets of the hotel.
It is claimed they were wrongfully appointed by the defendants over certain assets, including the hotel.
All of the defendants deny any wrongdoing.
