The owners of the Barne Estate in Co Tipperary breached an exclusivity agreement by considering offers by United States-based developer Maurice Regan, the Commercial Court has heard.
The claim has been added to the hotly contested case brought by billionaire horse breeder John Magnier and two of his adult children: John Paul Magnier and Kate Wachman, seeking to enforce an alleged deal reached last August 22nd for Mr Magnier’s €15 million purchase of the Clonmel property.
Mr Regan, who owns the New York-based construction firm JT Magen and co-owns the Mercantile Group of hospitality businesses, agreed in December to purchase Barne Estate Limited for €22.5 million.
The Magniers claim Mr Regan informed Ms Wachman’s husband on August 29th that he would pay €5 million more than Mr Magnier to ensure the August 22nd deal would not go through.
Gerry Thornley: Ireland’s fitful displays made for a rather disconcerting month
Nil Yalter: Solo Exhibition – A fascinating glimpse of a historically influential artist
Katie McCabe and Ireland fully focused on their qualification goal ahead of Wales match
A Californian woman in Dublin: ‘Ireland’s not perfect, but I do think as a whole it is moving in the right direction’
Mr Regan is not a party to the Commercial Court case.
The fresh claims focus primarily on alleged breaches of an exclusivity agreement they say was in force from August 31st to September 30th.
They claim it contains a clause providing that the estate would not permit its representatives to solicit or encourage any expression of interest, inquiry or offer on the property from anyone other than Mr Magnier. It also agreed not to participate in discussions or negotiations with others about the property, the Magniers allege.
Around August 31st, it is claimed, an appointed estate agent informed Mr Magnier that Barne received a substantially higher bid from Mr Regan, but it was still the intention to proceed with the land agreement.
Mr Regan made several purchase offers over the period, while the Barne side took no steps to conclude the transaction with Mr Magnier, the Magniers say.
The Magniers are suing the estate, Richard Thomson-Moore (whose family owns the stately home) and Jersey-based shareholding companies alleging they intend to repudiate their agreement to sell the residence and 751-acre tillage farm for €15 million.
Mr Magnier claims he, Mr Thomson-Moore and an estate agent shook hands on the deal reached at his Coolmore Stud last August.
The defendants, including IQEQ One (Jersey) Ltd, IQEQ Two (Jersey) Ltd and newly-added IQEQ (Jersey) Ltd, admit handshakes occurred but deny there is any enforceable deal.
They are seeking damages as part of their counterclaim alleging a High Court move by the Magniers prevented the sale of the lands and their access to about €22 million. They say Mr Magnier registered a lis pendens (meaning litigation pending) over the property as notice of a dispute without entitlement.
On Monday, Paul Gallagher, senior council for the Magniers, said there was no objection to his side’s amendments being added to the case.
Senior Counsel Martin Hayden, for the Barne defendants, said his clients will seek to amend their defence “in due course”. He stressed his desire to move the action along as quickly as possible.
Mr Justice Denis McDonald allowed the Magniers to deliver their amended claim and gave directions for further filings.
The Magniers allege Mr Magnier, his wife Susan, Coolmore farm manager Joe Holohan, Mr Thomson-Moore, his wife Anna and the estate auctioneer met at Coolmore stud last August and agreed the sale would be executed by way of direct purchase or through a sale of the entire shareholding in Barne Estate Ltd, which is the legal owner of the estate.
The Barne side alleges there were “in principle” discussions only to enter negotiations for Mr Magnier’s purchase of the lands but not the shares in Barne Estate Ltd.
No one at the meeting had authority to make a binding sale agreement, the Barne defendants say. This could only have been entered into with the directors of the corporate IQEQ defendants and trustees of the Jersey-domiciled Repus Trust, which holds the beneficial interest in the estate’s shares for a large number of potential beneficiaries, the defendants claim.
The Barne side’s counterclaim also alleges it returned two brown envelopes, each containing €25,000 in cash, that it says Mr Magnier and his son delivered to the estate in September.
- Sign up for push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our In The News podcast is now published daily – Find the latest episode here
