A COMPANY controlled by developer Joe O’Reilly is suing Harry Crosbie, co-owner of the O2 music venue, for €5 million over the new Grand Canal Theatre in the south Dublin docklands.

Mr O’Reilly’s company, Ramford, which is behind the development of the theatre, is seeking to enter legal proceedings against Mr Crosbie, the owner of the lease on the theatre, into the Commercial Court on Monday.

“There is a small row about the cost of the fit-out and who is to pay what – it is only a small thing,” said Mr Crosbie. “We will be guided by what the judge says on who pays what.” He said he felt that it was “a bit extreme to be going to court” over the matter.

The case would not affect the scheduled opening of the 2,000- seater theatre on St Patrick's Day with the Russian State Ballet performance of Swan Lake, said Mr Crosbie.

He said that he was the owner of the theatre, while Mr O’Reilly was the developer of the project, with John Sisk Co carrying out the construction contract.

Dominic Deeny, a director of Ramford and chief executive of Chartered Land, another of Mr O’Reilly’s development companies, has sworn an affidavit in the case, which will come before Mr Justice Peter Kelly in the commercial division of the High Court.

Dublin law firm Eversheds O’Donnell Sweeney is representing Ramford in the legal action, while Mr Crosbie is represented by solicitors William Fry.

The Grand Canal Theatre was designed by acclaimed international architect Daniel Libeskind.

The original promoter of the theatre, Terry Devey, sold his interest in the project to Mr O’Reilly’s Chartered Land in 2006 and construction began in 2007.

Mr O’Reilly’s company sold its interest in the long-term lease on the site to Mr Crosbie.

International music promoter Live Nation will run the theatre primarily as a receiving venue for international touring shows.