State faces fresh legal action as asylum centre contract cancelled

High Court Reporter

A third international protection applicant accommodation provider is suing the State over the repudiation of a contract to provide another such centre, this time in Donnybrook, Dublin.

Challenges to the shelving of similar centres in Cherry Orchard and in the Western Industrial Estate, both in Dublin, have already been brought.

Now Nightpond Ltd, with a registered office in Upper Dorset Street, Dublin, has brought a case over the shelving of a planned centre Cranford House, Cranford Court, on the Stillorgan Road in Donnybrook. It was to accommodate 41 residents in 13 rooms at a cost of €92.50 per person per day.

Nightpond would be paid up to some €2.7 million for the first two years with an option to extend for another year, bringing in up to €1.3 million. A further extension of three months in 2028 was possible for €345,000.

Nightpond is suing the Ministers for Children, Disability and Equality and the Minister for Justice, Home Affairs and Migration.

The Minister for Children had responsibility for international protection centres when the contract with Nightpond was signed but that role was taken over by the Minister for Justice last May.

The case was admitted on consent to the fast track Commercial Court on Monday by Mr Justice Mark Sanfey on the application of Ellen Gleeson BL, for Nightpond.

Ms Gleeson said the defendants had said they were now disposed to mediation as there were also a number of other cases which are being dealt with this way.

The judge agreed to adjourn directions for the progress of the case until February, when mediation is due to have taken place. He said they seemed like cases which are eminently suitable for mediation.

In an affidavit seeking entry of the case to the commercial list, Karl McMenamin, director of Nightpond, said the agreement with the Minister for Children was entered into last February with a completion date for October 1st.

Refurbishment works were carried out on the building, but on June 30th, Nightpond was informed the Minister for Justice was no longer "considering the offer of a potential IPAS (international protection accommodation service)".

Nightpond proposed mediation, as per the contract, but there was no response to this from the State.

The company now seeks the specific performance of the contract and/or damages for breach of agreement. Mr McMenamin says the company has spent some €577,000 on refurbishment works, and the value of the premises, which he says was "significantly enhanced" by the accommodation agreement, has now been significantly reduced by the repudiation.