Flatley ordered to pay €1.1m security costs in advance of €30m court action

Lord of the Dance star Michael Flatley has been ordered by a judge to pay €1.1m upfront as security for costs in advance of his €30m court action over works carried out at his Cork mansion.

The Flatley legal team had asked the Commercial Court not to award the full €2.8m sought by the other parties in the case and to limit security for costs to one-third.        

Ms Justice Roberts, after hearing submissions from all parties on Friday, set security for costs at €1.1m, which has to be lodged into court before the main action over the works carried out at the Flatley mansion, Castlehyde in Fermoy, can be heard.

The judge said the proceedings were at an advanced stage and the €1.1m security for costs will have to be paid into court.

Ms Justice Roberts said that ordering full security for costs would be to over compensate the defendants on the costs risk.

Last August, Ms Justice Roberts ruled Mr Flatley had to put up money for security for costs, and she ruled the businessman and entertainer is “not at this time ordinarily resident in Ireland but is rather here on a temporary and conditional basis.” The Flatley side has indicated it intends to appeal that decision.

In the main proceedings, the Riverdance performer claims he and his family had to vacate the Castlehyde period property in Fermoy, Co Cork, on October 2023 after alleged toxic chemical residue was detected during routine maintenance.

Mr Flatley is suing Austin Newport Group Ltd, the main contractor and insurance underwriters — MS Amlin Underwriting Ltd, AXA XL Underwriting Agencies LTD and Hamilton Managing Agency Limited — along with Lloyds Insurance Company.

All of the allegations are denied.

The Flatley side had asked the judge to limit the security of costs so that the entertainer only be required to put up one third of costs about €930,000 instead of the full €2.8m sought by the other parties in the case.

“There are constitutional issues for Michael Flatley. We say that Michael Flatley is entitled to access the courts like anyone else,” his counsel Ronnie Hudson BL, instructed by Maxwell Mooney solicitor said.

Michael Flatley, he said, had averred he is a “man of means and a man of his word”. Counsel said Mr Flatley’s constitutional rights “can’t be bought out because he has means.” Counsel for the underwriting and insurance defendants, Andrew Fitzpatrick SC, said there was no doubt that Michael Flatley had asserted on affidavit that he can pay the full amount.

Counsel said the usual starting point is when the party bringing the case cannot pay. He said that was not the case here.

Asking for full security for costs to be granted, Mr Fitzpatrick said Michael Flatley can undoubtedly pay and he said the judge should also consider the way the litigation had been conducted to date.

Counsel for Austin Newport, Rachel Duffy BL, also asked for full security for costs to be set in the case. She said it could either be the estimate before the court of €2.8m or to allow for costs for a 20 day action.

Counsel pointed out that Michael Flatley had indicated his intention to appeal the judgement of the court requiring him to pay security for costs. Counsel said the defendants will be put to further expense and costs if that is the case.