Desmond-linked trust to take legal action over ex-Dunne house

A trust associated with businessman Dermot Desmond is to take legal proceedings over a house on Dublin's Shrewsbury Road, the Commercial Court has been told.

Walford was bought for €58 million in 2005 by now-bankrupt property developer Sean Dunne and its ownership is being investigated by the official in charge of bankrupts' estates, the Official Assignee, Chris Lehane.

Celtic Trustees Ltd, acting for a trust associated with Mr Desmond’s family, has recently bought the house for a reported €12 million.

However, the purchase took place at around the same time Mr Lehane took proceedings against Yesreb Holdings, a Cypriot trust which had put the house up for sale last year and which, according to Mr Dunne, bought the house from his wife in 2013, for €14 million.

Mr Lehane is investigating whether the Dunne family has any connection with Yesreb, which is denied. The Official Assignee issued a lis pendens, a notice that the property is the subject of court proceedings, at the same time as he launched the case against Yesreb.

Entered an appearance

When the case taken by Mr Lehane came before Mr Justice Brian McGovern on Monday, he was told by Mark Sanfey SC, for Mr Lehane, that Yesreb had entered an appearance.

Counsel for Celtic Trustees, Paul Sreenan SC, said it wanted to join the proceedings and required good title to the property.

He also told the court that his client intended to bring separate proceedings against the Official Assignee in relation to the issue of good title.

Eoin McCullough SC, for Yesreb, suggested a three-week adjournment, which was agreed.

Mr Justice McGovern said the case against Yesreb might eventually end up before Ms Justice Caroline Costello, who is hearing an application to extend Mr Dunne’s bankruptcy on the grounds of alleged non-co-operation. The Walford issue “is intimately connected with all of that”, he said.

Appealing decision

Also on Monday, Bill Shipsey SC, for Mr Dunne, told Ms Justice Costello that his client was appealing her decision not to allow him examine Mr Lehane in relation to the bankruptcy extension application.

He also said an affidavit which Mr Dunne was to have filed on Wednesday would be ready in two weeks.

Ms Justice Costello said that, given the appeal, she would vacate the planned hearing date of April 4th for the extension proceedings. Mr Sanfey said the whole matter was now in abeyance but his client was not prejudiced as Mr Dunne would remain a bankrupt pending the hearing by the Court of Appeal.