The High Court has granted a temporary order restraining a businessman from interfering with a contract to provide accommodation to asylum seekers at three properties.
Mr Justice David Nolan was satisfied Hamid Butt, of Millbank Road, Kinsale, Co Cork, was notified about CRM Properties Limited’s intention to issue its court case.
Mr Butt failed to respond through his solicitor to the company’s request for him to undertake not to interfere with the contract it holds with the Department of Integration, the judge said.
In granting the order ex parte, while only CRM Properties was in court, he considered the potential for “very serious implications” for the occupants of the buildings, the plaintiff company and the State.
The court heard the company has a contract to provide housing to international protection applicants at properties in Blacklion, Co Cavan, a lodge in Kinsale, Co Cork; and a former hostel in Lower Glanmire Road, Co Cork.
CRM Properties claims Mr Butt acted as agent for his sister, who is the registered owner of the Cavan property, while he was the lessee of the Cork properties.
Séamus Clarke SC, with Cian Kelly BL, said there are 84 residents at the three properties managed by his client, CRM Properties.
He understands Mr Butt, a Pakistani national, is currently in Dubai but is due to return to Ireland. The company is afraid he will see through the threats he made regarding the contract with the Department, he said.
The judge’s order is due to remain in place until the case returns to court next Friday.
In a sworn statement, the company’s director, Donal O’Brien, said an arrangement was reached for Mr Butt to get a specified percentage of the gross income CRM Properties receives from the Department on foot of the contracts to house asylum seekers.
The company, which has an address at South Mall, Cork City, has to date paid him €1.47 million on foot of the contracts, Mr O’Brien said.
An issue arose when, in late summer of last year, the Department reduced the payment per room but, due to an alleged “administrative oversight”, CRM did not reduce payments to Mr Butt. CRM sought to offset an alleged €84,000 overpayment against amounts due as part of the profit share agreement, said Mr O’Brien.
Mr Butt has claimed he is owed money and that the payments should not be reduced, Mr O’Brien added. He became “extremely irate” in messages, said Mr O’Brien, including asserting he will “get my 75k back from properties or more once I’ll kick you out but u will loose your 125k a month for nothing over your stupidity” (sic).
He also threatened to “lock down all my properties” and stated an intention to enter his own contract with the Department for the provision of asylum seeker accommodation, said Mr O’Brien.
This would be a “direct interference” with the contractual relationship held between CRM Properties and Mr Butt, he added.
In recent weeks, Mr Butt’s solicitors have claimed a sum is due for “rent”, while on Wednesday CRM Properties was told it could be embarrassed via the legal discovery process if it issued proceedings and did not transfer €100,000.
The case returns to court next week.
