Several legal actions brought arising out of the collapse of German property firm Dolphin Trust have been resolved, the Commercial Court has been told.
No details of the settlement agreements, against some but not all of the defendants involved, were given to the court.
Dolphin, allegedly founded by British-German businessman Charles Smethurst, raised funds for investments in the development and renovation of listed buildings in Germany including apartments.
It is estimated that between €650 million and €1 billion was invested in the property group from investors in countries including the UK, Russia, South Korea and France, with some €150 million coming from Irish investors.
What did Irish Times readers search for most in 2024?
Tasty vegetarian options for Christmas dinner that can be prepared ahead of time
Mark O'Connell: The mystery is not why we Irish have responded to Israel’s barbarism. It’s why others have not
‘One Christmas Day my brother set me on fire’: seven writers spill their most bizarre Yuletide yarns
Dolphin MUT 116 was the investment vehicle for pension investors, while another Irish-registered firm called Dolphin MUT 103 dealt with individual investors.
Shane McCarthy and Ian Barrett, of KPMG, were appointed joint liquidators over Dolphin MUT 116 in 2021. Myles Kirby was appointed liquidator over MUT 103.
Following the winding-up of Dolphin MUT 116, the liquidators claimed their investigation found German Property Group – formerly Dolphin Trust – was in financial difficulty for a number of years and there were numerous warning signs of this.
They brought proceedings claiming that misrepresentations were made by several parties allegedly involved with Dolphin to brokers in relation to Dolphin Trust products.
They had sought damages against various defendants for alleged negligence, breach of contract and declarations including that they account for any gains made directly or indirectly from any breach of duty.
The allegations of wrongdoing have been denied.
On Friday John Lavelle BL, for Mr McCarthy and Mr Barrett, told Mr Justice Denis McDonald that his clients had resolved their actions against several of the defendants.
Counsel said the proceedings against the estate of the late Paul Dunne, of Terenure, Dublin, could be struck out.
It was claimed that Mr Dunne, who died in October 2020, had been managing director of a firm that administered funds provided by Dolphin MUT 116 through the German Property Group, previously called Dolphin Capital and Dolphin Trust.
It was alleged he acted as a shadow director of Dolphin MUT 116.
Counsel said it had also been agreed that proceedings against other defendants could be adjourned generally.
Those defendants are Wealth Options Trust Ltd, a firm for which Mr Dunne was managing director; a linked firm called Wealth Options Capital Ltd; company directors Brian Flynn, of Lions Gate, Glenvar Park, Blackrock, Dublin, and Eanna McCloskey, of Silver Birch Close, Mullfarm Estate, Dunboyne, Co Meath.
The joint liquidators had claimed Mr Flynn and Mr McCloskey were directors of Wealth Options Trust and shareholders in Wealth Options Capital, while Mr Dunne was managing director of Wealth Options Trust from 2004 until his death in 2020.
Counsel said that an application would be made to re-enter the proceedings against those parties, if needed.
Counsel said proceedings against Mr Smethurst remain live before the court.
Mr Justice McDonald agreed to strike out the cases against the estate and said that while he was prepared to adjourn generally the cases against the other parties, there was “no guarantee” the court would readmit the actions to the fast-track Commercial Court list if asked.
The judge noted that while Mr Smethurst, who is based in Germany, had not participated in previous hearings of the action, he has been in correspondence with the liquidators’ lawyers.
The case against him will be mentioned before the court later this year.
