Dunnes Stores has been ordered to pay almost €20million to a developer following an arbitrator’s decision this week.
Dunnes Stores is disputing the decision directing it to pay some €20 million in relation to a shopping centre development in Ferrybank in south Kilkenny.
Property developers Holtglen Ltd asked the Commercial Court this week to fast track the hearing of a Dunnes’ challenge and also indicated it intends to bring its own proceedings for an order enforcing the arbitrator’s award.
Dunnes is the anchor tenant at the troubled Ferrybank Shopping centre which is completed for some years but has not been opened to date.
Mr Justice Peter Kelly agreed to an application by Maurice Collins SC, for Holtglen Ltd to transfer proceedings to the Commercial Court, and made directions for the exchange of legal documents and returned the case to March 2012.
Holtglen Ltd told the hearing that it had large borrowings in connection with the development at Ferrybank and that it was “of the utmost importance” that it is paid by Dunnes as soon as possible.
They also claimed that Dunnes, in refusing to fit out its anchor store at the development, was seeking to thwart the opening of the shopping centre.
Under an agreement made in 2007, Dunnes was to pay sums totalling more than €38 million to Holtglen in staged payments.
Holtglen claims practical completion of the anchor store was achieved in June 2009, while practical completion of the shopping centre was achieved by August 2009.
It also claims Dunnes refused to pay monies due on achieving those milestones and instead, in an alleged attempt to avoid paying the monies, instituted arbitration proceedings claiming breaches of a development agreement by Holtglen, which counterclaimed for payment.
