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James Reilly sued over nursing home contract

James Reilly - Among five people being sued
James Reilly - Among five people being sued

Minister for Health James Reilly and Fine Gael Councillor Anne Devitt are among five people being sued in connection with an alleged failure to buy their co-owners share of a nursing home in County Tipperary.

The five are being sued in the Commercial Court by a group of eight others - including doctors and solicitors - in relation to the 55-bed Greenhills Nursing Home in Carrick-on-Suir.

It is claimed that Dr Reilly and the four others had a contract to buy the nursing home from this group of eight people out of their share in the nursing home for €1.95m plus VAT.

The group of eight are claiming that the five agreed in November 2000 to buy the nursing home from them on the tenth anniversary of its opening - which fell in April of this year.

They are claiming that notices were served in April and May on Dr Reilly, Ms Devitt of Lispopple in Swords, and the three others: Paul Kelly of Mountjoy Square, Dublin, Dilip Jondhale of Pococke Upper, Johnswell Road, Kilkenny, and Ciaran Flanagan, Grattan Court, Inchicore Terrace South, Dublin 8.

These notices required them to fulfil the agreement to purchase the nursing home and to release the eight people from all liabilities to Bank of Ireland concerning the property.

The nursing home was described in court as a commercial success and a valuable business asset.

At the Commercial Court today, Mr Justice Peter Kelly adjourned the matter to allow for mediation between all parties.

If mediation does not succeed, it will come before the court again in October.

Dr Reilly's barrister asked the Court to consolidate the case with another set of proceedings relating to rent arrears at the nursing home, but this request was refused because not all the parties are the same in both cases.

In the register of TD's interests published in April 2011, Minister Reilly disclosed that he owns a quarter share of the nursing home.

The eight plaintiffs suing Dr Reilly, Ms Devitt and the other three defendants are: Michele Mellotte of Tullamore, Co Offaly
Orla Higgins of Ashfield Road, Ranelagh, Dublin
John Caulfield of Belgrove Road, Clontarf, Dublin,
John McGreevy, Mount Propsect Avenue, Clontarf, Dublin and
John Whately, Ardee Road, Dundalk, Co Louth;
Garry Smyth of Ailesbury Grove, Dundrum, Dublin;
Michael Morris, Chelmsford, Celbridge, Co Kildare;
Tom Murphy, Wynestown, Oldtown, Co Dublin.