Brothers Joseph and James Sheehan have reached a settlement in a dispute over a company that owns a half share of the private Galway Clinic health centre. The two obstetricians are shareholders in Blackrock Medical Partners Limited.
At the High Court on Thursday, Mr Justice Donald Binchy adjourned the matter to June 30th to allow for implementation of the settlement.
Chicago-based Joseph Sheehan had brought proceedings under Section 213 of the Companies Act against his brother James, a consultant obstetrician practising in Dublin, arising from a dispute concerning Blackrock Medical Partners Ltd.
The brothers, both aged in their seventies, each own a 50 per cent shareholding in the company, which in turn owns a half share of the Galway Clinic.
In addition to their medical practices, the brothers have significant commercial interests, the court was told.
The proceedings had opened briefly on Wednesday before being adjourned to allow for resumption of discussions between the sides.
Michael Cush SC, for Joseph Sheehan, told Mr Justice Binchy on Wednesday the sides had an agreement “in principle” but needed to put it in writing and hoped to have it settled by Thursday failing which the case would proceed. If agreement was reached, it would end “a long running and painful dispute” and his side considered a key element of a settlement involved a valuation of Joseph Sheehan’s shareholding, counsel outlined.
Earlier, counsel said Blackrock Medical Partners was incorporated in 2000 and both brothers had initially advanced the same amount of funds towards development of the Galway centre and both provided guarantees to AIB as security for further funding.
It was initially envisaged they would be the only two involved in the company and the Galway development but they later encountered difficulties both with the developer and funding, and required the involvement of other investors.
A shareholders agreement was executed in May 2004, counsel also outlined. Prior to that, actual ownership of the clinic was transferred to another company, he said.
Talks between the sides continued throughout Thursday until the matter was later adjourned to allow for implementation of settlement.
In separate proceedings, the High Court last January ruled Talos Capital Ltd was entitled to a €2.78 million judgment against Joseph Sheehan and John Flynn, two of the main shareholders in Dublin’s Blackrock Clinic. That judgment has been stayed pending an appeal which is listed for hearing next month.
Talos sought the judgment over alleged “material” default on a loan agreement under which it advanced €2.4 million for a proposed transaction, which ultimately did not proceed, under which the defendants were to acquire their loans relating to the Blackrock Clinic and the associated security from Irish Bank Resolution Corporation. The defendants had disputed those claims.
Talos later secured charging orders over Joseph Sheehan’s shares in Blackrock Medical Partners Ltd and also secured charging orders over shares held by Joseph Sheehan and John Flynn in another company operating Dublin’s Blackrock Clinic.
