The Peter McVerry Trust has been granted a short reprieve from its obligation to complete the purchase of a €300,000 greenfield site in Co Kerry by today.
The homelessness charity, which is currently experiencing financial and governance issues, was last week given seven days by Killarney Circuit Civil Court to complete its contract for the lands in Killarney town centre.
That court was acting on an application by Nocwerdna Limited, which alleged it entered into an agreement with the trust last January with a view to constructing a sheltered facility for children and young people on the site.
On Friday afternoon, on the application of the trust, Ms Justice Niamh Hyland paused the effects of the Circuit Court order until next Wednesday, when she will hear from both sides in the dispute about a potential further pause.
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The order was due to come into effect at 00.01 on Friday, but the judge on Thursday extended it until Friday afternoon, when she further extended the pause.
Senior counsel for Nocwerdna, David Sutton, said his client would be submitting an affidavit in reply to the trust’s claims, as “a lot of things need to be said that are unsaid at the moment”.
The urgent stay comes as part of the charity’s appeal against the Circuit Court decision.
In a sworn statement to the court, the trust’s deputy chief executive, Elizabeth Pena, said she had been advised the trust has “arguable” grounds for the case to be remitted and for a trial to take place in due course.
She alleged that the Circuit Court judge erred in dealing with the matter in a summary manner when there were “facts to try and witnesses to be heard”. He also erred, she claimed, in not considering “the conflict in the evidence presented”.
The trust, represented by barrister Shane Kelly, had asked the court to remit the matter for an expedited trial of the issues, but the judge refused and summarily pronounced a decree of specific performance last week, she said. That court also refused the application for the order’s effects to be delayed.
She added that the judge erred in imposing an “entirely unreasonable” seven-day compliance period on the Friday afternoon of bank holiday weekend.
Nocwerdna has raised concerns about media reports regarding the trust, but it is “wrong” for it to suggest there is an issue with the trust’s ongoing viability, Ms Pena said. The charity has “found itself in short-term financial difficulty which is now being actively managed through the engagement of external expertise and supporting partners (primarily State agencies)”.
In September, the State’s regulator for housing bodies appointed statutory inspectors to conduct an investigation into financial issues at the trust. The charity had in July informed the Department of Housing that it was facing serious cash flow pressures that led to auditors PwC being appointed to conduct a financial and governance review.
In its Circuit Court case, Nocwerdna alleged the trust was in “continuing and manifest” breach of a written contract, agreed last March, by failing, neglecting or refusing to complete the sale. Nocwerdna, with an address at High Street, Killarney, was at all times ready, willing and able to perform its terms, it said.
The Circuit Court was told by Nocwerdna’s barrister, Elizabeth Murphy, that a €10,000 booking deposit was paid but the remaining amount was outstanding.
The case will return to the High Court next week.
