The sale by one company to another of a County Tipperary hotel was described as a "fraud" and a "sham" in the High Court yesterday.
Mr Michael Collins SC said the agreement surrounding the purported sale of the Ormond Hotel, at Kenyon Street, Nenagh was fictitious. At a previous hearing, it was alleged there was fraudulent preference in the transfer of the hotel from Verit Hotel and Leisure (Ireland) Limited, now in receivership and liquidation, to Letcane Investments.
The Revenue Commissioners petitioned to have Verit wound up on the grounds of insolvency and a liquidator was appointed in August 1994.
In court yesterday, Dr Michael Forde SC - for Mr John Carway with an address at Port Erin, Isle of Man; his son Stephen and daughter Elaine Carway of Ballyvalley House, Killaloe, Co Clare and Letcane - questioned the right of the liquidator to claim privilege over certain documents at the trial of the action between the parties scheduled for mid-May.
Dr Forde said the liquidator of Verit was not entitled to claim privilege over documents that would not be relevant to the action. After a brief adjournment, Mr Justice O'Sullivan ruled that the liquidator does have privilege over the documents which consist of communications between the liquidator and the Revenue Commissioners, the liquidator and lawyers in the US and Canada and a sworn affidavit from a Mr Randolph J Haines.
