A BUILDING firm is being sued by two property developers over what a High Court judge has described as an "extraordinary" contract in which a deal for the €19 million sale of lands in Dublin was secured on a deposit of €100.

Mr Justice Peter Kelly made the remark yesterday when transferring proceedings brought by John Burke and Seán Flanagan, Summerhill, Co Meath, against McGinley Construction, The Hollands, Lifford, Co Donegal, to the list of the Commercial Court.

Hugh O'Neill SC, for the plaintiffs, agreed the contract was "rather unusual". Mr Burke and Mr Flanagan claim they agreed a written contract on November 15th, 2006, for the sale for €19 million to McGinley's of lands at Ravensdale Road, East Wall, and that McGinley's paid €100 as a deposit. It was an express term of the contract that the sale of the property would be completed and the balance of the €19 million paid on or before May 31st last but the defendant had failed to complete the purchase, they claim.

Their solicitors had served a completion notice on McGinley's on June 3rd but the construction company has refused to complete the contract, it is alleged.

Mr Burke and Mr Flanagan say they understood McGinley's had entered into the contract with a view to commercial development of the East Wall property. They say they had sought revised planning permission with increased density for the property but that permission had been refused.

McGinley's had said this refusal presented a problem for and the parties had been unable to resolve that issue. The plaintiffs say they are dependent on the contract being honoured to complete a number of other projects.

The developers claim they had entered into a number of other agreements with the defendant, including a caretaker's agreement under which McGinley's had taken possession of the East Wall property as caretaker for them.

They had also entered into a conditional combined building agreement/contract for sale in relation to an apartment at Alexandra Place, East Road.