A legal row over the value of online insurance broker Quote Devil Ltd has been settled. The dispute centred on how much a minority shareholder and website designer for the business was paid two years ago for most of his holding in the firm.
Francis Nesbitt claimed a €420,000 payment he received undervalued the holding and that he was in entitled to €2.2 million, the Commercial Court heard.
He sued 71 per cent Quote Devil shareholder John Richard McGuire, board member and 12.9 per cent shareholder Graham Weir, those two men’s original brokerage Pembroke Insurances, and a company called Daventry Commercial Ltd, which is controlled by Mr McGuire.
He also sued Quote Devil and a number of other minority shareholders against whom no reliefs were sought but who had been joined as defendants because of the potential effect on the share register of Quote Devil.
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The defendants denied Mr Nesbitt’s claims. Mr McGuire said they were spurious and an attempt to extract additional money to which Mr Nesbitt has no legal entitlement. In doing so, Mr McGuire said, he had made “a range of scandalous and wildly untrue allegations”.
Mr Nesbitt had claimed that due to “economic and emotional distress”, he had to sell 8 per cent of his 10 per cent holding at an undervalue after failing to get a loan from Mr McGuire to meet his obligations.
Earlier this year Quote Devil was sold to Chill Insurance and Three Rock Subco Ltd for more than €30 million.
Mr Nesbit sought an order from the court that he be paid €2.2 million for the shareholding he sold two years ago. As part of his proceedings he also sought an injunction to prevent Quote Devil from dissipating assets below €2.2 million, a move described by Mr McGuire as an attempt to jeopardise the sale of Mr Nesbitt’s shares to Chill.
That injunction was due for hearing before Mr Justice Mark Sanfey on Tuesday when Martin Hayden SC, with Eoin O’Shea, told the judge that the entire case, including the injunction matter, had been settled following talks.
Mr Hayden asked that the matter be scheduled for later this month for the implementation of the settlement. He said it “won’t trouble the court”.
The judge said it was satisfactory and congratulated all concerned.
