A US lawyer suing the Football Association of Ireland and a number of its officers, including chief executive John Delaney, must put up security for legal costs in case he loses his High Court action, a judge has ruled.
New Jersey-based Jack F McCarthy III, a former owner and chairman of Limerick FC, is suing over losses he says he suffered on an investment in the football club.
Mr Justice Michael White ruled that if Mr McCarthy wanted to proceed with his action he would have to allow a charge be placed over a three-apartment residential property on Herbert Street, Dublin. The property is owned by a company in which Mr McCarthy has a controlling interest.
No liquid assets
This was an alternative to putting up a cash lodgement of €87,000, which the defendants sought towards what they estimated as a total bill of €263,000 for defending the case.
Mr McCarthy claims he lost about €280,000 as a result of his purchase of a company called Limerick Thirty Seven FC Ltd seven years ago. He opposed the security-for-costs application on the grounds that the defendants’ alleged wrongful actions left him unable to provide security as he had no liquid assets.
In November 2009, he resigned as a director of the club and is suing for damages, including punitive damages, alleging fraudulent inducement to enter a contract to buy Limerick FC.
The defendants deny the claims.