The sale of religious order-owned land in Leopardstown, south Dublin, to a developer for €23 million has fallen through due to a dispute over the provision of a school on part of the site, the Commercial Court has heard.
Developer Rimor Magna Ltd is suing the trustees of the Legionaries of Christ in Ireland, owners of the land at Rocklands, which was to be sold to Rimor with a provision that it would also construct a new faith centre and school to replace the existing Creidim Centre and St Michael’s House special school.
It is claimed the sale fell through after a 2022 planning application for the school, faith centre and two office buildings was rejected by Dún Laoghaire-Rathdown Council on the grounds that the development failed to provide for a mainstream primary and post-primary school in accordance with Department of Education requirements. The claims are denied.
On Monday, Rimor’s case seeking an order that the congregation be prohibited from rescinding the contract for sale was admitted to the fast-track Commercial Court.
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The application was made by Marcus Dowling SC, for the defendants, who said his clients did not want a substantial damages claim hanging over them and were seeking an expeditious hearing.
Niall F Buckley SC, for Rimor, said that while not opposing the application for entry to the fast-track court, his side was arguing that it was given to understand by the defendants that Department of Education support was available for the plan but it was not.
Mr Justice Mark Sanfey said while there had been an argument about delay in bringing the proceedings, any culpable delay was on the part of Rimor rather than the defendants.
He was satisfied it was a suitable case for entry to the commercial list. He approved agreed directions between the parties and put it back to November.
In an affidavit seeking entry of the case to the Commercial Court, Fr Mariano Ballestrem, manager of the congregation’s affairs in Ireland, said the trustees terminated the contract with Rimor in November 2024 over its failure to comply with a special condition that it secure an acceptable grant of planning permission. The defendants also tendered the return of the €2.3 million deposit Rimor had paid.
“Insofar as the congregation is concerned, that was or should have been the end of the matter,” he said.
Fr Ballestrem said Rimor’s proceedings depend on a role allegedly played by a certain individual in the planning process.
This individual held himself out as an agent of the congregation and represented that he had ascertained the requirements of the department prior to the lodging of the planning application and that the department would not object to the development, he said.
After rejection of the application, the individual said the department would be satisfied with just one mainstream school on the development and represented that this strategy had been approved by the congregation, Fr Ballestrem said.
However, at a meeting of the congregation in October 2023, there was no such approval and it was expected the terms of the contract would be complied with, he said.
Fr Ballestrem said the congregation disputes that the individual had any significant role to play in Rimor’s engagement with the department or that he represented the congregation in that regard.
Rimor is claiming to have spent more than €1.7 million on efforts to secure planning permission.
The defendants deny the claims, including claims for damages, brought by Rimor.
