DUNNES STORES has claimed it is entitled to rescind a €46 million agreement related to the Point Village development in Dublin’s docklands because of the alleged abandonment of plans to build a 102m “Watchtower” and the “U2 Experience”.
Dunnes claims the tower was to include 31 floors of apartments and other floors, including a restaurant, bar and sky garden, and was to be a “distinctive” element of the Point Village development, operating as “an iconic landmark” for Dublin.
The U2 Experience would also benefit the development as a whole by its association with U2, Dunnes claimed.
In proceedings against Point Village Development Ltd (PVD) and businessman Harry Crosbie, Dunnes claims the defendants have wrongfully claimed they do not require Dunnes’ consent not to proceed with the two developments.
It is also alleged PVD has failed satisfactorily to resolve deficiencies in the planning status of the development.
The defendants had told Dunnes last March that the Watchtower and U2 Experience were separate buildings from the centre in which the Dunnes’ flagship store at the Point Village is being constructed.
It was claimed €14 million had been spent on substructure works at the tower but the defendants were reviewing the commercial viability of proceeding further at this time.
The defendants, on May 26th, wrongfully purported to vary building works by removing the Watchtower and U2 Experience from those works, it is claimed.
The action against both defendants was admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.
The case arises from an agreement of February 27th, 2008, under which Dunnes agreed it would pay €46 million, plus VAT, for certain works as defined in a development agreement.
Dunnes claims it has put €23 million on deposit in a nominated account for works allegedly carried out under the agreement. A previous action by PVD and Mr Crosbie against Dunnes relating to the payment of monies was resolved last April, it also noted.
It is alleged “very significant differences” have arisen between the sides concerning the interpretation of the development agreement.
Dunnes claims the construction of the tower was abandoned after the basement was built while no arrangements have been made for construction of the U2 Experience. The company alleges the defendants, in a letter of May 26th, wrongfully and unlawfully purported to vary the building works by removing both developments without Dunnes’ consent.
Dunnes is seeking declarations that the alleged breaches of the development agreement constitute a repudiation of that agreement and Dunnes is therefore entitled to rescind the agreement and to be repaid all the monies held in the nominated account.
Mr Justice Kelly listed the case for mention on October 19th when a trial date may be sought.
