Case involving Johnny Ronan company and council firm goes to arbitration

High Court Reporters

A dispute over a €35 million office plan for Cherrywood, south Dublin, between companies in the Johnny Ronan group a developer has been referred to arbitration by the president of the High Court.

DLR Properties Ltd brought proceedings against RGRE Devco 4 Ltd (RGRE 4) and Ronan Group Real Estate Ltd seeking declarations that a development agreement between the parties was validly terminated as a result of breaches by the defendants.

DLR, a wholly owned subsidiary of Dun Laoghaire Rathdown Council, also seeks damages for alleged slander of title and defamation over statements from the Ronan Group website which state or imply the defendants have any legal or equitable title or interest in the planned office site.

On Tuesday, Mr Justice David Barniville appointed an arbitrator to deal with all but the alleged defamation and slander of title and related aspects of the case following an application from Marcus Dowling SC, for DLR.

Mr Dowling said effectively the parties had agreed that the plenary aspects of the dispute should go to arbitration.

The planned office site is 1.3 acres of an overall 13.3 acre site in Cherrywood, 12 acres of which is zoned for town centre development.

DLR says it entered into an agreement in May 2019 in which DLR would transfer the 12 acres to RGRE 4 in return for which that defendant was required to construct on the remaining 1.3acres a 145,000sq ft office building at a cost (in 2019) of more than €35 million.

DLR, which is trying to sell the office site, says the defendants breached that obligation and have made false statements which will cause serious concern among prospective bidders and frustrate or delay any sale.

The defendants strongly deny the claims.