Developer Johnny Ronan. Photo: Jason Clarke
A dispute over a €35m office plan for Cherrywood, south Dublin, between companies in the Johnny Ronan group and a council-backed developer has been referred to arbitration by the president of the High Court.
DLR Properties Ltd brought proceedings against RGRE Devco 4 Ltd (RGRE 4) and Ronan Group Real Estate Ltd, seeking declarations that a development agreement between the parties was validly terminated as a result of breaches by the defendants.
DLR, a wholly owned subsidiary of Dún Laoghaire Rathdown Co Council, also seeks damages for alleged slander of title and defamation over statements from the Ronan Group website, which state or imply the defendants have any legal or equitable title or interest in the planned office site.
On Tuesday, Mr Justice David Barniville appointed an arbitrator to deal with all but the alleged defamation and slander of title and related aspects of the case, following an application from Marcus Dowling SC, for DLR.
The planned office site is 1.3 acres of an overall 13.3 acre site in Cherrywood
Mr Dowling said effectively the parties had agreed that the plenary aspects of the dispute should go to arbitration.
The planned office site is 1.3 acres of an overall 13.3-acre site in Cherrywood, 12 acres of which is zoned for town centre development.
DLR says it entered into an agreement in May 2019, in which DLR would transfer the 12 acres to RGRE 4 – in return for which the defendant was required to construct on the remaining 1.3 acres a 145,000 sqft office building at a cost (in 2019) of more than €35m.
DLR, which is trying to sell the office site, says the defendants breached that obligation and have made false statements which will cause serious concern among prospective bidders and frustrate or delay any sale.
They allege they firms breached its obligations under the development agreement
DLR previously claimed that RGRE 4 failed to take the necessary steps towards constructing the building planned for the site, thus breaching its obligations under the development agreement.
DLR also claims that incidents of trespass and defamation and slander of title have been committed by or on behalf of the defendants since the termination of the agreement.
These include an incident in which RGRE 4 directed or caused third parties to enter on to the site with geological survey equipment without permission.
The defendants strongly deny the claims.