Two property developers are suing a building firm over what a High Court judge has described as an 'extraordinary' contract, in which a deal for the sale of lands in Dublin for €19m was secured on a deposit of €100.
John Burke and Sean Flanagan of Summerhill in County Meath are taking the action against McGinley Construction of the Hollands, Lifford in County Donegal. Their lawyer, Hugh O'Neill agreed with Mr Justice Peter Kelly that the contract was 'rather unusual'.
Mr Burke and Mr Flanagan claim they agreed a written contract in November 2006 to sell lands at East Wall to McGinley for €19m. They say the construction firm paid €100 as a deposit.
They say the sale was to be completed and the balance paid by May 31 but the defendant failed to complete the purchase.
The two property developers say they understood McGinley Construction had entered into the contract with the intention of developing the lands commercially. The men say they sought revised planning permission with increased density but this was refused.
McGinley Construction said this refusal presented a problem and the parties had been unable to resolve the issue. Mr Justice Kelly transferred the proceedings to the Commercial Court list.
