The insurers of Michael Flatley’s Co Cork estate have applied for his €25 million damages claim to be referred to out-of-court mediation.
The Riverdance performer says he and his family had to vacate the period property last October after toxic chemical residue was detected during routine maintenance. He has sued the main contractor who allegedly renovated Castlehyde following a June 2016 fire at the property.
He claims the unsafe levels of chloride residue is due to PVC combustion in the fire and that the alleged main contractor, Austin Newport Group Ltd, was aware of a residue issue.
The case is also against insurers MS Amlin Underwriting Ltd, AXA XL Underwriting Agencies LTD and Hamilton Managing Agency Limited, as well as David Cushion, based in Fitzrovia, London, who was allegedly his accountant and insurance broker.
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Mr Flatley also wants to add a fourth insurer, as he alleges he is owed €80,000 for each month he is out of his house, the court heard.
The three insurers already sued by Mr Flatley are asking the court to refer the case to mediation. Senior Counsel Martin Hayden said his clients “should not be here at all”.
However, Mr Hayden and Senior Counsel Stephen Dowling, for Austin Newport Group, did not object to the case being admitted to the commercial list.
The claims in the case are denied.
Mr Justice Denis McDonald accepted the Irish dancer’s case into his fast-track list as he said it is very likely repairing the alleged damage would exceed €1 million, which is the required claim value for cases in the Commercial Court.
However, the judge questioned the basis for asserting the cost of works to Castlehyde “could be in the region of €25 million”. The claim has been made in “very broad-brush terms”, he said.
Barrister Ronnie Hudson, instructed by Maxwell Mooney and Company Solicitors, for Mr Flatley, said the figure was quoted by a construction firm.
Mr Justice McDonald adjourned the case for one week to determine how the insurers’ motion seeking mediation will be heard.
In a sworn statement to the court, Kent Carty solicitor Gavan Carty, for the three insurers, said Mr Flatley made a claim on his insurance policy over the fire and in May 2018 reached a settlement agreement with the underwriters for a €3.9 million payment.
This agreement contained a clause stating that Mr Flatley acknowledges the underwriters shall not be called upon to provide compliance certificates for any remediation works and that he shall satisfy himself of the adequacy of the repairs, said Mr Carty.
Any dispute arising about the implementation of the agreement shall be referred in the first instance to a mediator and in default of mediation to an arbitrator, he said.
This action requires expert investigation and reports, so it would benefit from early mediation, the solicitor added.
The Lord of the Dance star claims he has invested more than €29 million since acquiring the property in 1999.
He is seeking damages from the insurers and contractor for alleged negligence, endangerment, deceit and breach of health and safety regulations.
Mr Flatley is suing Mr Cushion for breach of contract.
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