Judge grants temporary freezing orders in row over shares in Galway Clinic private hospital
Three companies involved in a dispute over shares in the Galway Clinic private hospital have secured a temporary High Court injunction freezing the assets of a company controlled by US-based medical doctor and businessman Joseph Sheehan Snr.
The injunction was secured by Marpole Ltd, BMD Investments Ltd and Parma Investments against Blackrock Medical Partners Ltd (BMPL) which allegedly owes the three firms over €800,000 in legal fees after it was unsuccessful in a High Court action against them.
The freezing order was sought over fears of the three companies that funds Blackrock Medical Partners Ltd have recently received from the sale of shares may be dissipated.
The court heard that BMPL had up until recently been a shareholder in the Galway Clinic.
It had sued Marpole, which is the holding company of the clinic, BMD which had until 2016 been a shareholder of the clinic and was ultimately owned by businessman Brian McDonald and his family, and Parma.
Parma which is also a shareholder in the clinic and is owned by the trusts for the family of businessman Larry Goodman, was also sued .
In a judgement, delivered last year by Ms Justice Teresa Pilkington, the court dismissed BMPL's action aimed at preventing BMD from transferring its shares in Marpole to Parma. The judge also awarded the three firms their legal costs of the action against BMPL.
Rossa Fanning SC for the three firms told the court today that his clients fear that BMPL, which recently came into funds of several million euro following a sale by a receiver of the shares it held in Marpole Ltd to Parma, may attempt to dissipate those funds beyond their reach.
Counsel said the price paid to the receiver appointed to BMPL was confidential and commercially sensitive, but exceeded that firm's estimated secured debts of over US$21m.
Counsel said that it is his client's case that the Irish-registered BMPL has a cash surplus following the sale of several million euro, and is in a position to discharge the legal costs due to the three other firms.
The concerns about funds being dissipated out of Ireland arise out of the fact that BMPL has no assets other than the cash from the share sale, and no ongoing business activities.
Counsel said it was also the case that BMPL and Mr Sheehan had defaulted on payment obligations to other parties.
There was no reason for Mr Sheehan to leave cash in the firm for any extended period of time. BMPL's parent company is incorporated in the United States, where its ultimate owner also resides, counsel said.
Counsel said that undertakings not to move or transfer the funds were sought by his clients, but were not given.
Counsel said the exact costs incurred by his side in defending the action have yet to be quantified. However they have been estimated at approximately €800,000.
Counsel said that there was a long history of litigation between BMPL and Joseph Sheehan against Parma and related companies in relation to the Galway Clinic and the Blackrock Clinic in Dublin.
There was, counsel added a lot of personal animosity and bad blood between Mr Sheehan and Mr Goodman, counsel said.
The temporary freezing order, which prevents BMPL from transferring, dissipating or moving its assets outside the jurisdiction was granted on an ex-parte basis by Ms Justice Pilkington.
The order also prevents BMPL from reducing its assets, and in particular the proceeds of the sale of the Marpole shares, within the jurisdiction below the sum of €800,000.
The judge, who said she was satisfied to grant the order based on the evidence put before the court, adjourned the case to next week.
