THE MAN who leases Sachs Hotel in Dublin claimed the High Court that malicious telephone calls were made alleging he was laundering drug money for the IRA through the hotel.
His brother, a senior Garda officer, was said have assisted him in this, Mr Philip Smyth said yesterday. He claimed that the calls were made on lines listed in the names of Tunney Meats Ltd and/or Mr Hugh Tunney, who leased the hotel to him.
The calls were made to the South East Regional Crime Squad of the British police force he added.
Mr Smyth, a director of Genport Ltd, Upper George's Street, Dun Laoghaire, Co Dublin, is counterclaiming against Crofter Properties Ltd Philipsburgh Avenue, Dublin of which Mr Tunney is the ultimate owner.
Crofter Properties Ltd denies the claims. It states that, if any of the phone calls were made they were not made for or on behalf of or with the consent or knowledge of Crofter, its servants or agents, it denied that Crofter, by itself - its servants or agents made any communication with the parties referred to in the counterclaim.
Several lengthy cases involving the two companies have already been before the High Court.
Crofter Properties claimed that Genport had failed to pay rent from August 1st, 1993, to November 1st, 1995, and that the total amount was £619,344.18. Yesterday Mr Michael Collins SC, for Genport, agreed that his client had not paid.
In its defence, Genport claimed that its failure to pay the rent did not constitute a breach of the covenants or conditions of the lease.
For that reason, and for the reasons given in the counterclaim, Genport was under no obligation to pay the rent or, alternatively, was obliged to pay only a fair and equitable rent.
In the counterclaim, Genport says Crofter Properties Ltd committed injurious falsehood, negligent misstatement, defamation, and wrongful interference with the economic interests of the defendant. It is seeking damages.
It is claimed that between January 1993 and November 1994, a series of phone calls of a malicious, untrue and defamatory nature were made by or on behalf of Crofter from phone lines in Classiebawn Castle, Mullaghmore, Co Sligo, which were listed in the names of Tunney Meats Ltd and/or Mr Hugh Tunney as subscriber.
In these phone calls a female caller falsely and maliciously alleged that Mr Smyth, through Genport, was "laundering drug money for the IRA through Sachs Hotel, Morehampton Road, Dublin 4 and that he was assisted in this illegal activity by his brother, a senior officer in the Garda Siochana."
The phone calls were made to the South East Regional Crime Squad in London, it is claimed.
The allegations made in the calls were passed on to the Garda by the British police concerned, which led to an investigation by the Garda to the prejudice, damage and detriment of the defendant.
Phone calls of a similar nature were made on lines which listed in the name of Mr H Tunney c/o the Gresham Hotel. The calls were made to the parties as the previous ones, it was claimed.
In the summer of 1993, Mr Smyth became aware that British police were making inquiries and carrying out investigations at the Dorchester London, which was frequented by him, calls made to that containing similar false and malicious allegations.
The information in the calls was entirely untrue, as was known to Crofter. It was claimed the words spoken and information communicated were calculated to cause pecuniary damage to the defendant in respect of its business as tenant of Sachs.
The calls were made to the Dorchester in the expectation that they would cause embarrassment and damage to Genport and harm its credibility and reputation in the hotel industry.
The case, before Mr Justice McCracken, continues today.