Lord of the Dance star Michael Flatley is back before the courts in a row over the adequacy of insurance cover at Castlehyde, his Co Cork mansion.
The Commercial Court today heard that the receiver appointed over the luxury mansion wants the interim injunction stopping him taking steps in relation to the property lifted amid concerns about the adequacy of the insurance cover at the property.
And the court heard from Mr Flatley’s lawyer, Ronnie Hudson BL that on Tuesday this week the star had increased insurance cover for the mansion from €4 million to €8 million with an added premium of €90,000.
Mr Hudson told the court that there was adequate insurance cover on Castleyhyde and he will bring a broker to court to give evidence.
13 days ago a High Court judge granted an interim injunction to Mr Flatley restraining a receiver or his agents from taking steps in relation to the star’s mansion in Fermoy.
The order was made as it emerged that the mansion had been put up as security on a €5.6million loan taken out by his London film company in 2023 and a receiver had been appointed over Castlehyde.
A receiver was appointed in a row over the repayment of the loan with the film company and Mr Flatley saying that all loan repayments had been made in full by the film company.
In court on Wednesday, Counsel for the receiver Kelley Smith SC said they were seeking that the interim injunction be discharged and the issue was the adequacy of the cover.
She said the Flatley side had sent insurance documents to them and another policy had been taken out the day before but the issue was the scope of the insurance and the policy on Castelhyde was limited and included such things as fire, lightning and explosion.
Counsel said the policy did not cover all perils and was not an all risks policy.
Ms Smith said there had been “a chequered history of events at the property “and issues in relation to insurance cover.
She said the Flatley side were now saying they had €8 million insurance cover but she said it is in respect of a limited range of perils.
The joint receivers of Castlehyde wanted all risks insurance cover and had bought a 30 day policy for Castlehyde which will expire on January 2nd next.
She said Castelhyde was on the national monument list and in a rural setting and because of media attention it was now well known it was unoccupied.
Ms Smith said it was a very serious matter of concern and the receiver was willing to say he would not take steps to dispose of Castelhyde if the interim injunction was discharged.
The receiver counsel said needed possession of the building and to carry out surveys for the underwriting information.
Counsel said the issue must be addressed by January 2nd.
Counsel for Mr Flatley, Mr Hudson told the court a gatekeeper lives in a gate lodge and there is also a housekeeper at Castlehyde and the insurance policy had been increased on Tuesday this week.
Mr Justice Mark Sanfey who adjourned the application to tomorrow Thursday said it is a very serious matter if a substantial property did not have adequate and appropriate insurance cover.
He appreciated the application had been made quite suddenly but said the matter could not go beyond the end of this week.
The judge said he regarded it as a very serious situation and if he decided counsel for the receiver is correct and the receiver has to be given access to Castlehyde then the judge said he would expect the parties put their heads together in order to secure the property.
The judge said he will have to be satisfied there is appropriate insurance on Castlehyde.
Novellus Finance Ltd which provided the €5.6million loan insists there was default on the loan given to Blackbird Film Productions Ltd and for which Mr Flatley provided a guarantee on the strength of the value of his Castlehyde mansion in Fermoy, Co Cork.
Mr Flatley and Blackbird deny all the claims.
