A dispute between Dunnes Stores and developer Harry Crosbie over a €46 million agreement related to the Point Village development in Dublin’s docklands is on the verge of settlement, the Commercial Court has head.
After talks between the sides, Mr Justice Frank Clarke agreed this afternoon to a request from Michael Cush SC, for Dunnes, to adjourn the case to tomorrow to allow an agreement between the sides be finalised.
Mr Cush said the parties had reached agreement on the core issue but a number of subsidiary issues had to be deal with and an agreement also had to be drafted.
Michael Collins SC, for Point Village Development Ltd and Mr Crosbie, said he agreed with Mr Cush's assessment of matters.
The case was due to open this morning and both Margaret Heffernan of Dunnes and Mr Crosbie were in court.
However, the sides asked for time and talks continued outside court. The judge was told on a number of occasions progress was being made and that eventually led to the application to adjourn matters to today when a finalised agreement may be announced.
The case arises from the Point Village agreement of February 27th, 2008 under which Dunnes, whose €23 million flagship store in the Point Village is under construction, agreed it would pay €46 million, plus VAT, for certain works.
Dunnes claims it is entitled to rescind that agreement due to the alleged abandonment of the defendants' plans to build a 102-metre high "Watchtower" and the "U2 Experience".
The Watchtower, to include 31 floors of apartments and other floors with a restaurant and bar/sky garden, was to be a "distinctive" element of the development, operating as "an iconic landmark" visible from all over Dublin, Dunnes claimed.
The "U2 Experience" would also benefit the development as a whole by its association with the world famous band, it added.
Dunnes disputes the defendants claim they did not require Dunnes consent not to proceed with the two developments. The retail giant also alleges PVD failed to satisfactorily resolve deficiencies in the planning status of the development.
The defendants had told Dunnes in March 2009 the Watchtower and U2 Experience were separate buildings from the centre where the Dunnes' flagship store is being constructed. The defendants, after reviewing the commercial viability of the two
developments, decided in May 2009 against proceeding with them.
Dunnes claims it has so far put some €23 million on deposit in nominated accounts for works allegedly carried out under the agreement. A previous action by PVD and Mr Crosbie against Dunne related to the payment of monies was resolved.
