The civil dispute involving three former Web Summit business partners has been adjourned to allow the men consider a direct appeal from the trial judge to pursue a mediated settlement.
Former company director Daire Hickey had been due to begin evidence against his one time associate and Web Summit founder Paddy Cosgrave on Tuesday morning.
That case is one of five separate actions being heard simultaneously before the High Court in Dublin, in a protracted and acrimonious legal dispute expected to last into June.
However, at the outset of Tuesday’s proceedings Mr Justice Michael Twomey said he wished to address the litigants directly. He then appealed to the three parties to pursue a mediated resolution outside the courtroom in order to end what could otherwise turn into a lengthy legal case on appeal, potentially reaching as far as the Supreme Court and lasting until 2028.
Insufficient funds in Enoch Burke’s bank account to cover €79,100 fines, court hears
Principal accused of locking student teacher in school and suggesting they pursue sexual relationship, inquiry hears
Brian O’Driscoll issued with compliance notice by consumer watchdog over ‘misleading’ social media post
Fintan O’Toole: Ireland’s delightful love triangle is ending in a nasty divorce
“That is time the parties will never get back,” he said.
Until now, the judge said, lawyers for the three former business partners and friends had had the opportunity to set out their clients’ positions in black and white terms, but sworn evidence was only due to begin on Tuesday.
“That is why the case really only starts today,” he said, describing the legal approach up to that point as having the potential to offer a “reality check” to those involved.
“This dispute, at its heart, is not a larger corporate dispute but a very personal dispute.”
In setting out his view of the proceedings ahead, Mr Justice Twomey noted the potential personal toll. Quoting the French philosopher Voltaire, he said: “I was never ruined but twice: once when I lost a lawsuit, and once when I won one.”
After brief consultation among the parties, Bernard Dunleavy, senior counsel for Mr Cosgrave, told the judge his views had been taken on-board and requested further time. Then, just before lunch, Mr Dunleavy informed the court that some progress had been made and a further adjournment was granted until Wednesday morning.
Now in its fifth day, there had been much anticipation in advance of the first direct evidence in Court No 29.
Daire Hickey is alleging his rights as a minority shareholder in Manders Terrace, the trading company behind the tech conference business, were oppressed by Mr Cosgrave. He is also suing Mr Cosgrave for alleged breaches of a profit-sharing agreement.
Another minority shareholder, David Kelly, is also suing Mr Cosgrave. Separately, Mr Cosgrave – vigorously defending himself in both sets of proceedings – is suing Mr Kelly for alleged breaches of duties when he was a company director.
Mr Cosgrave owns 81 per cent of the business; Mr Hickey owns 7 per cent; and Mr Kelly, 12 per cent.
All three men were in court on Tuesday where Mr Hickey had been ready to give evidence before Mr Justice Twomey’s early appeal.
The court had previously heard that the relationship between Mr Hickey, who joined the business in 2010 and left as an employee in 2017, and Mr Cosgrave had broken down in the years after Mr Hickey moved to the US in 2013. Mr Hickey resigned as a director in 2019.
He is alleging that Mr Cosgrave weaponised a 2016 sexual harassment complaint made against him by an employee to force him out of the company.
The court heard that Mr Hickey, who vehemently denies the allegation, was not even aware that a formal complaint had been made and was not given any chance to respond to the claims at the time.
Last month the warring parties agreed to attempt a mediation process, and appointed Sue Prevezer KC, a London-based barrister, to facilitate talks before the process ultimately broke down.
