A dispute between two groups over an alleged breach of an agreement to divide up the assets of joint ventures they had previously owned including the IBIS Red Cow Hotel in Dublin has come before the High Court.
Duddy Hospitality Ireland Holdings Limited, Brendan Duddy and Lawrence Duddy, which are all part of the Duddy Group have sued Propiteer Ireland Holdings Limited, DADAC Ltd, Propiteer Ltd, Colin Sandy David Marshall which are all part of the Propiteer Group.
The court heard that the two groups had been partners in several joint ventures, including the Red Cow Hotel, a hotel in Exeter, England, and developments in Dublin and Belfast.
After differences emerged between them in 2019 it was decided to divide up the shared assets and go their separate ways.
It is claimed that in 2020 the two groups entered into settlement agreements regarding the various assets they had jointly held.
The Duddy Group claims that as part of those arrangements it would get ownership and control of the IBIS Red Cow Hotel and related companies.
In its proceedings the Duddy Group claims the Propiteer Group breached the settlement agreements.
It is alleged that the Propiteer Group has acquired the IBIS companies secured borrowings from a third party and has purported appointed receivers over certain assets including the hotel.
Arising out of that the Duddy Group have also sued the receivers, insolvency practitioners Ken Fennell and Andrew O'Leary of Interpath Ireland, and want the courts to make orders requiring them to cease action as receivers over the assets.
It is also alleged that the defendant group has sought to remove directors from the boards of two of companies associated with the hotel and are seeking to replace them with their own nominees.
The Duddy Group claims that the defendants are not entitled to do this and seeks orders preventing any changes to the companies' boards.
It is claimed by the Duddy Group that the defendants "regret" allowing the Duddy GBroup to acquire the hotel after seeing how well it has been performing.
In their action the plaintiffs, who are represented in the proceeding by Brendan Kirwan SC and Neal Flynn Bl instructed by Flynn O'Driscoll LLP solicitors, seeks various orders including injunctions preventing any alteration to the boards of, or the removal of any directors of, companies involved in the running of the Red Cow Hotel.
The plaintiffs also seek an order preventing the appointment of named individual to the boards of the same companies.
If granted those orders will remain in place until the main proceedings, where the Duddy Group seeks orders including the specific performance of the agreements allegedly entered into by the parties in 2020, have been determined by the courts.
The Duddy Group also seeks orders directing Mr Fennell and Mr O'Leary from purporting to act as receivers of the assets of the hotel.
The matter came before the High Court, Ms Justice Eileen Roberts granted the plaintiffs permission, on an ex-parte basis, to serve short notice of the injunction proceedings on the defendants.
It will come back before the court next month.
