A company which says it spent €6 million repurposing and refurbishing two Dublin office buildings for international protection accommodation claims the Government renounced an agreed deal to use the properties for that purpose.
Lonadale Ltd said it entered into agreements to convert IFAC House, Old Naas Road, and Canal House, South Circular Road, to accommodate 158 residents at a daily rate of €90 per person.
On Monday, proceedings by the company against the Minister for Children, Disability and Equality and against the Minister for Justice, Home Affairs and Integration, were entered into the Commercial Court by Mr Justice Mark Sanfey.
The application was made by Bernard Dunleavy SC, for Lonadale, with no objection on behalf of the State defendants who may bring an application for security for costs against Lonadale.
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The judge adjourned the matter to next month to allow the State to make a decision on the possible security for costs application.
In an affidavit by Jersey-based Lonadale director, David Kennedy, he said the contract was to be for two years with options to extend on a yearly basis for two more years. He said a minimum of four years is required to make such projects viable.
In reliance on refurbishment agreements made in February 2025 with the Department of Children, Disability and Equality (DCDE), Mr Kennedy said his company began fitting out the buildings and working towards a summer commencement date.
However, in May, he said responsibility for international protection accommodation was transferred to the Department of Justice.
At a July 10th last meeting department officials, Lonadale was told the Minister for Justice intended to breach, or secure a breach of, the refurbishment agreements.
There was further correspondence from Lonadale to the department and there followed pre-litigation correspondence including an offer of mediation from the company.
There was no response to a pre-action letter from the company and as a result proceedings were initiated.
Lonadale seeks, among other things, damages for breach of contract and duty. It also seeks, as against the Minister for Children, Disability and Equality, damages for misrepresentation and damages against the Minister for Justice for unlawful interference with contractual and/or business relations.
Mr Justice Sanfey commented on Monday that it seemed to him “a matter eminently suitable for mediation” and the sides may wish to consider that between now and November.
