O'Brien snr puzzled by Lowry mention in dispute

Denis O'Brien snr was unable to explain references in the files of William Fry solicitors indicating the involvement of Michael Lowry's accountant in a dispute between the O'Brien family and a Northern Ireland businessman.

Mr O'Brien told John Coughlan SC, for the tribunal, he was not aware of any contacts he or anyone on his behalf - other than his solicitors - had with Kevin Phelan, about a dispute over fees due on a stg £4.3 million property transaction in Doncaster.

Denis O'Brien jnr has said the Doncaster deal was his exclusively and had no connection with Mr Lowry.

Mr O'Brien snr said he was in charge of seeking to settle the dispute over fees with Mr Phelan in 2002 and had not gone "outside" his solicitors during negotiations.

The tribunal heard there was agreement between both sides that Mr Phelan was due stg £150,000. However when William Fry solicitors, for the O'Brien family, sought a narrative statement from Mr Phelan concerning his involvement in the Doncaster project, they were supplied with documents from Mr Phelan that included a fax that referred to "ML" in the Doncaster project.

Mr O'Brien told Mr Coughlan that he thought he was being intimidated or blackmailed when he saw the reference. He said he could have paid Mr Phelan but he first wanted an explanation for the ML reference. He said he had sought the narrative from Mr Phelan as the vendors of the Doncaster property were at that stage taking the O'Brien family to the High Court in London in a dispute over retention funds.

Asked if he or anyone on his behalf other than his solicitors had been in contact with Mr Phelan during this period, he said: "Absolutely not." To the best of his recollection no one had approached him on Mr Phelan's behalf. "I never would go outside my solicitors." Mr O'Brien was shown a note from the files of William Fry that seemed to record the content of a telephone call from Mr O'Brien in which he was quoted as having said he had arranged for Mr Phelan's solicitors to contact Frys and arrange a meeting. The note ended: "Denis is available on his mobile if you want him."

Other notes from the files indicate Mr Lowry's accountant, Denis O'Connor, was in contact with Mr Phelan and his solicitors at around this time.

Following the breaking down of negotiations between the solicitors acting for both sides in July 2002, a letter from Mr Phelan's solicitors, Woodcocks, dated August 19th, 2002, re-opened the correspondence.

It read in part: "We understand that our respective clients are close to terms of settlement." Mr O'Brien said he could not recall the letter.

The dispute was settled with the payment of £150,000 by the O'Brien family and a statement from Mr Phelan to the effect that the ML reference was to Mr Lowry but not to Doncaster.