A BUSINESSMAN is being sued over his alleged failure to complete a contract to buy a business premises in Co Dublin for some €4.27 million.
William Harvey, a company director of Eaton Square, Terenure, Dublin, has brought the action against Michael Kiely, a businessman from Ashgrove, Collegeland, Tipperary town.
The case was admitted to the Commercial Court this week by Mr Justice Peter Kelly on the application of Donal O’Donnell SC, for Mr Harvey, who said Mr Kiely’s failure to complete the sale of the premises had left Mr Harvey with a capital gains tax bill for some €311,000.
Counsel said Mr Kiely had told his client last November he did not have sufficient funds to complete the sale but would discharge the €311,000 debt.
In the action, Mr Harvey alleges he entered into a written contact with Mr Kiely in May 2008 under which Mr Kiely agreed to purchase the premises, known as Site D Aerodrome Business Park, Newcastle, Co Dublin, for €4.275 million, plus VAT, of which €213,750 was paid by Mr Kiely as a deposit.
Mr Harvey claims the closing date on the contract was November 10th, 2008, and the sides had also agreed a separate short-term letting agreement, allowing Mr Kiely occupy the premises until the closing date.
It is claimed the contract was not completed as agreed and Mr Kiely remains in occupation of the premises although the letting agreement had expired.
It is further claimed Mr Kiely had written to Mr Harvey last November stating he was experiencing a delay in the availability of funds and would not be able to complete the sale on the agreed closing date but was continuing in his efforts to secure the necessary finance.
Mr Kiely had later written alleging Mr Harvey had failed to comply with the terms of the contract but had failed to specify that claim, it is alleged.
Mr Harvey claims he has a mortgage on the Newcastle premises and that the capital and interest payment on that mortgage will amount to some €294,500 this year if the contract does not complete.
He is also required to pay service and insurance charges and estimated rates costs would be some €36,750.