A HIGH Court judge said yesterday he hoped he had established a new care regime for the retired residents at the Clonmannon Village, Ashford, Co Wicklow.
Mr Justice Shanley had given judgment in an application by the liquidator to the companies previously involved in the cunning of the village. These were Rayhill Property Co Ltd, Home Affairs Ltd and Hilltop Catering Ltd.
He allowed the liquidator, Mr Brian Conroy, to disclaim the old care contracts which he said were onerous and unprofitable and to sell the leasehold interest for £1.
He said the new owners of the village, Ms Jane McGrath and Mr Roderick McGrath purchased the lands last August. But they did not buy the leasehold interest.
The liquidator had made an application for liberty to disclaim the old care contracts held by the residents of the village and to sell the lease hold interest for £1.
Ms McGrath had stated in an affidavit that the care contracts had not been operated since 1993. The judge said he was satisfied that the bungalow leases would subsist and were not contingent on the provision of care services. He said the care contracts did not permit Rayhill to provide an a la carte service and he was satisfied it was unnecessary to require the performance of the care services by a company in liquidation.
Mr Justice Shanley also stated, that he was satisfied there was evidence that the care contracts were unprofitable and that the liquidator should have leave to disclaim the care contracts. It did not affect the rights of those holding the bungalow leases.
The second application concerned the leasehold interest. There was no other purchaser for the leasehold interest. He would have to conclude in the absence of any valuation evidence, that the leasehold did not have any real or substantial value. He would permit the disposal of the lease hold interest for £1.
The judge put a stay of seven days on the order in the event of an appeal which should be lodged within that period.