PRIORY HALL developer Thomas McFeely filed for bankruptcy in the UK without “the knowledge or involvement” of his Irish legal team, the High Court was told yesterday.
His lawyer, Michael Hayden SC told Ms Justice Elizabeth Dunne they were as “taken by surprise” as anyone else when they heard their client had filed for bankruptcy in the UK.
Mr McFeely was declared bankrupt in London last Friday.
Yesterday, a woman who had already applied to have him declared bankrupt here said she would consider applying to overturn the English bankruptcy decision.
The bankruptcy regime in the UK is less stringent and Mr McFeely could emerge from it in 12 months, instead of 12 years under the Irish system.
Theresa McGuinness, of Rush, Co Dublin, applied to the High Court last autumn to have Mr McFeely declared bankrupt following his failure to pay an award made to her in 2009 against his company, Coalport Ltd.
She was awarded €103,000 in damages against Coalport after it emerged that a house she had bought had serious structural defects.
She has also claimed she is owed an additional €200,000 in costs arising from her 2009 court action.
Yesterday, Martin Hayden SC, for Mr McFeely, said he and his solicitor only learned of the UK bankruptcy after the London court made the decision last Friday. They now had no instructions from their client. “This was done without our knowledge or involvement,” he said.
Mr Hayden told Ms Justice Dunne that a draft affidavit was being prepared “as late as last Thursday” to be filed by the solicitor in advance of yesterday’s case.
“Given what has happened, I am not in a position to act for Mr McFeely,” he said.
He also requested that the judge look at a letter he had written to Mr McFeely in relation to what had happened.
However Ms Justice Dunne said it would not be appropriate for her to look at the letter as it may amount to legal advice to his client and would be privileged.
She advised the barrister to apply to “come off record” as Mr McFeely’s representative.
Ms McGuinness said she would be seeking a stay on the Dublin bankruptcy proceedings as she was now actively seeking to have the UK bankruptcy overturned.
Ms Justice Dunne however said it would be more in her interests to apply for an adjournment.
She told Ms McGuinness she had the option of seeking to overturn the UK proceedings, but she also had the option to have the Dublin case opened as secondary to the proceedings to be taken by her in the UK.
The judge said she was willing to adjourn the matter to allow Ms McGuinness to consider these options.
“You can come back and inform me of the steps you wish to take,” she said. She adjourned the case to April 16th.
In separate proceedings, Mr McFeely is appealing a High Court ruling that he breached court orders and undertakings requiring him to meet weekly targets for the completion of fire safety works at his controversial apartment development at Priory Hall.
The action was taken by Dublin City Council after Mr McFeely was ordered to carry out repair works to the 187-apartment complex in Donaghmede, north Dublin.
The complex was evacuated in October on foot of a High Court order after it was found to be a fire hazard.
Mr McFeely is also appealing orders, which have been stayed pending his appeal, fining him €1 million and jailing him for three months.
