A sum of £150,000 was paid to Mr James Gogarty by Mr Michael Bailey as a finder's fee for the deal on the Murphy lands, the developer told the tribunal. Mr Bailey said Mr Gogarty had demanded the money in 1989. With interest, the final sum became £162,500.
Mr Gogarty had described himself as the agent, but Mr Bailey said he did not know what Mr Gogarty's position was.
Mr Desmond O'Neill SC, for the tribunal, asked when and how the £50,000 cheque drawn by him and his brother, Thomas, in favour of Mr Gogarty was postdated September 1990.
"That cheque was handed to Mr Gogarty in the Royal Dublin Hotel on November 24th, 1989, together with £50,000 cash and a similar cheque in the same sequence for security for monies that would be paid to him on an ongoing basis," said Mr Bailey.
Asked on what basis Mr Gogarty had earned this money, Mr Bailey replied: "He demanded this fee, mainly as a finder's fee for the deal on the lands, on the Murphy lands.
"He [Gogarty] described himself as the agent and he wanted a finder's fee," Mr Bailey said. Mr Bailey said he did not know what Mr Gogarty's position was. Mr O'Neill asked if he did not know Mr Gogarty was a director of the company.
"I never knew what his position in the Murphy Group was even to this day," said Mr Bailey.
He believed Mr Gogarty was an outsider acting for the Murphys because he had told him he had retired or was about to retire from the Murphy Group. He never knew Mr Gogarty to be the vendor.
Mr O'Neill said while there were many variables, one thing was certain, and that was that a sum of £150,000 was to be paid to Mr Gogarty in the event of a successful outcome, whether the property sold for £1.9 million, £2.3 million or £2.8 million. Mr Bailey said that was correct.
Counsel said it was not mentioned in his letter of offer dated July 10th, 1989. Mr Bailey said it was not to apply to the contract.
"Because he [Gogarty] wanted the £150,000 in cash. We had a job even to get him to accept the two cheques because he wanted the £150,000 on the date of November 24th and we couldn't give it him because we didn't have it," Mr Bailey said. Mr O'Neill said he then became aware that Duffy Mangan Butler were the sales agents for the land and he went to their offices on November 27th, 1989. Mr Bailey said he did not know what their position was. He had no knowledge if they were the agents or not. He had no involvement with them at all.