The three Web Summit co-founders have agreed “in principle” to enter mediation prior to a scheduled hearing of bitter disputes between the three men, although they are yet to agree to a suitable mediator to facilitate the process, the High Court has heard.
Evidence in five separate actions, brought variously by Paddy Cosgrave, Daire Hickey and David Kelly against one another, are due to be heard together over the course of a nine-week civil trial beginning on March 18th.
Mr Justice Michael Twomey heard on Thursday that Mr Cosgrave’s legal team “in substance” rejected five well-known mediators based in Ireland – including a former Chief Justice of Ireland and a recently retired Supreme Court judge – suggested by Mr Hickey’s lawyers to facilitate a mediation process.
Appearing for Mr Hickey, Brian Conroy SC said Mr Cosgrave’s side was adopting the “bizarre” position that no one based in Ireland is suitable to mediate the dispute. He said that implied in correspondence from Mr Cosgrave’s legal team was that all potential Irish mediators are familiar with the parties involved in the dispute, and therefore unsuitable to facilitate the mediation process.
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Joe Jeffers SC, appearing for Mr Kelly, said requests for Mr Cosgrave to nominate potential Irish mediators had gone unanswered.
Mr Conroy said Mr Cosgrave’s legal team had suggested barristers based in London to mediate.
Bernard Dunleavy SC, for Mr Cosgrave, said it was “regrettable” an agreement on a mediator had not been reached, but was hopeful the issue would be resolved by the end of the week.
The case brought by Web Summit and its chief executive Mr Cosgrave alleges Mr Kelly, who owns a 12 per cent stake, breached his fiduciary duties as a director of the company.
Mr Kelly and 7 per cent shareholder Daire Hickey, who both cofounded Web Summit with Mr Cosgrave, each have two separate but similar actions against the company and Mr Cosgrave alleging oppression of their minority shareholder rights and breach of an alleged profit share agreement.
The claims in all five of the cases are robustly denied.
Mr Justice Twomey, who is managing the cases ahead of the beginning of the trial on March 18th, said he was anxious that the disputes go to mediation, emphasising the advantages of the process. “The main actors are together for the first time [in mediation] ... that is probably one of the key benefits of mediation,” he said.
Noting the parties had agreed to mediation “in principle”, Mr Justice Twomey said he would take a more “active role” in resolving the issue at hand if the parties had not reached an agreement by next week.
Mr Conroy said a trial schedule provided to the court by Mr Cosgrave’s legal team re-enforced their views that the trial is unlikely to finish within the allocated nine week period.
Mr Dunleavy said that if parties stick to the timetable, the trial will finish in time. He said this would require cross-examinations to be focused, and questions to be tailored.
The case was adjourned to next week.
