Fry correspondence: Solicitors acting for Denis O'Brien sought a statement from a Northern Irish businessman saying Michael Lowry had no connection with the Doncaster transaction, the tribunal heard.
The request, by William Fry solicitors, was part of negotiations on fees which eventually led to Kevin Phelan being paid stg£150,000. In a letter in July 2002, it sought a statement saying that a reference to "ML" in a 1999 fax from Mr Phelan was not a reference to Mr Lowry, and/or that Mr Lowry had no interest in the Doncaster purchase.
Mr Phelan's English solicitors, Woodcock & Sons, responded: "You will be aware that our client is in negotiations with your firm on behalf of Westferry Limited, LK Shields solicitors, on behalf of [ Dublin accountants] Bryan Phelan, together with Bryan Phelan & Company, and also [ accountant] Denis O'Connor on behalf of his client, Michael Lowry."
The firm added: "Our client is extremely disappointed that, despite him doing everything that was lawfully possible to agree satisfactory terms of settlement, your client and those other parties associated to the above venture have not been prepared to crystallise terms of settlement . . . Due to the very serious implications of the request that is now being made by your client, we have been specifically instructed by our client to terminate negotiations."
Twenty days later Mr Phelan provided a statement saying ML was Mr Lowry, but the reference was to a property in Mansfield, not Doncaster.
"William Fry appear to have accepted this explanation and to have sought no indication as to the basis for or reasoning behind it," said Jerry Healy SC, for the tribunal, which resumes today.
