Beef exporter Mr Larry Goodman, who is being sued for more than £13 million (€16.51 million) by former Master Meat Packers (MMP) chairman, Mr Pascal Phelan, has "accepted" that he controlled and owned the MMP group since 1987, the High Court was told yesterday. Mr Phelan is claiming there was a conspiracy to defraud and damage his shareholding in MMP.
Mr Phelan alleges there was a conspiracy between a former MMP partner, Mr Zakaria Taher, Mr Goodman and others to secure the removal of the MMP group of companies from the meat trade in Ireland and elsewhere, whether by putting them into receivership or securing ownership and control of them.
Mr Justice O'Donovan made orders relating to changes in Mr Goodman's defence which include the fact, according to Mr Brian O'Moore SC, for Mr Phelan, that Mr Goodman "accepts for the purpose of these proceedings" that he controlled and owned the MMP group since 1987.
Mr Phelan's claims arise from October 1986 when he sold about 50 per cent of his shareholding in MMP to Mr Taher. He claims Mr Taher's shareholding in "Mastermeat Anstalt" (which held the MMP shares) was later sold to another company Tarsos Anstalt. Mr Phelan alleges Mr Goodman was the beneficial owner of Tarsos Anstalt.
Mr Paul Gallagher SC, for Mr Goodman, said his client did not agree with Mr Phelan's contention that this was a concession forced from Mr Goodman. The concession being made was for these particular legal proceedings brought by Mr Phelan.
Mr O'Moore said Mr Phelan denied claims made on behalf of Mr Goodman that there had been any fraud in the operation of the MMP group of companies.
Mr Justice O'Donovan also made orders in relation to documents concerning the sale of MMP which are being sought by Mr Phelan's lawyers from Allied Irish Bank and the Department of Enterprise and Employment.
There are four actions involving Mr Goodman, Mr Phelan and Mr Phelan's former MMP partner Zakaria El Taher. Mr Justice O'Donovan said three of the actions were linked and the fourth would await the outcome of the first three. One judge will hear the proceedings and the court was told that it was hoped the actions could be ready for hearing in February.
The former MMP chairman alleges he sold his shareholding in the MMP group under "deadlock" provisions in the shareholders agreement between himself and Mr Taher. He claims he sold at undervalue and that Mr Goodman induced a breach of an agreement between Mr Phelan and Mr Taher.
Mr Phelan has also brought an action against Mastertrade (Exports) Ltd and others in which he claims certain dividends and payments. Mastertrade (Exports) and others are also suing Mr Phelan claiming damages for misappropriation.
During yesterday's hearing, an English barrister, Mr Michael Stinson (instructed by William Bradshaw and Co) told Mr Justice O'Donovan that his client, Mr Taher, was aged 80, in bad health, and an "Arabian gentleman" who proposed to come to the Irish courts and give "very valuable evidence".
His client would not like to see anything that would delay the trial and the possibility of "doing away" with any chance of this very important witness coming to this country to give evidence.
In their defences, Mr Goodman and Mr Taher deny the allegations of wrongdoing.