A company owned by property developer Bernard McNamara has begun legal proceedings in the Commercial Court against the Dublin Docklands Development Authority.
Donatex is taking the action over the terms of a property deal in November 2006 to purchase the former Irish Glass Bottle Company site in Ringsend in Dublin.
The deal was one of the biggest in Ireland and took place at the height of the property boom.
A consortium headed by Mr McNamara and fellow property developer Derek Quinlan paid €412m for the 25-acre site.
The site is now reportedly valued at around €60m.
The consortium also involved DDDA and a group of private clients of stockbroker Davy.
Donatex is alleging the DDDA did not meet its commitments in relation to planning permission on the site.
A spokesman for the DDDA said it will contest this vigorously.
In separate proceedings, the private clients of Davy involved in the deal intend to sue Mr McNamara on foot of personal guarantees given by him in the same deal.
