New row erupts over costs in relation to legal battle over receiver being appointed to Michael Flatley’s Cork mansion

A new row has erupted over costs in relation to the legal battle over a receiver being appointed to Michael Flatley’s Cork mansion, Castlehyde.

While the Lord of the Dance star this month paid off a €6.9million loan to keep the receiver from the door of his Fermoy mansion, the Commercial Court on Tuesday heard of a new dispute over legal fees claimed by the other side.

Counsel for the star, Ronnie Hudson BL instructed by Maxwell Mooney solicitor, told the court that Mr Flatley who had lodged €1.4million in court until the final disputed costs bill was decided upon is “utterly dismayed” at the current position.

Counsel said Mr Flatley thought he was lodging into court in relation to contractual costs by the other side in relation to the Castlehyde receiver battle. It is claimed that the costs bill includes legal fees in the region of €793,000.

In a letter from Mr Flatley’s solicitors to Arthur Cox solicitors for the lender, Mr Flatley seeks the repayment of the €793,000 which has already been lodged in court.

The original legal battle related to a loan made to Mr Flatley's Blackbird Film Productions Ltd by Novellus Finance Ltd with registered offices at St Stephen’s Green, Dublin in 2023 with repayments of €67.000 per month over two years.

Novellus claimed there has been default on repayment, which Mr Flatley denied. Mr Flatley provided a guarantee for the loan on the strength of the value of his Castlehyde mansion. As a result of the alleged default, Novellus appointed a receiver over the property.

An interim injunction was granted to the Flatley side to prevent the receiver from taking further measures in relation to Castlehyde and judge conducted a two-day hearing on the matter.

The Flatley side asked for Mr Justice Mark Sanfey to hold off on giving his judgement on whether to set aside the interim injunction stopping the receiver taking steps or grant an interlocutory injunction to the Flatley side and said Mr Flatley was flying into Dublin to sign documentation to allow for finance to pay off the loan.

The €6.9m loan was finally paid off and only the issue of costs remain.

In court on Tuesday counsel for Novellus, Eithne Corry BL, said the suggestion by Michael Flatley that some money be paid out of court was “pie in the sky”.

She said all allegations made by the Flatley side against her clients had been dropped and what was left was the issue of the disputed costs sum which could be dealt with by mediation. Counsel said her side did not accept the complaint made by the Flatley side in relation to invoices.

Mr Justice Mark Sanfey said the question of what ought to be mediated was a question for the mediator and not the court.

Regarding mediation, the judge said he expected the parties “to get on with it” and he said mediation “is the way to go on this”.

Mr Justice Sanfey, who will get an update on the mediation proposal in early April, told the sides that “all parties should give mediation a shot” and he said when the case next comes back before the court he expects to be told either that mediation is going ahead or definitely not going to happen.