Dispute between refugee accommodation provider and Government settled

High Court Reporter

A development company, which sued the Minister for Justice over the shelving of a plan to convert an industrial unit in Dublin into refugee accommodation, has settled the action, the Commercial Court heard.

On Monday, Stephen Byrne, for the Palmerstown Temporary Accommodation (PTA) Ltd company, said that following mediation, a settlement had been reached between his client and the minister, and the matter could be struck out with a form of order for costs on an enhanced basis.

Judge Mark Sanfey struck out the proceedings.

In its claim, PTA said it spent €17 million on converting number 64/65 in the Cherry Orchard Industrial Estate in west Dublin which was to accommodate 456 individuals.

It would bring in some €26.6 million in State payments, based on an €80 per person per day fee, over an initial two-year period, it said.

PTA's parent is Tailored Projects Ltd, with a registered office at The Box, Chapel Lane, Killarney, Co Kerry, which bought the unit for around €3.5 million in early 2024.

In February 2024, it said South Dublin Co Council issued a "declaration of exemption for planning" which meant the 32,000 sq/ft building did not require planning permission to turn it into accommodation.

PTA signed a contract in July 2024 with the Minister for Children to carry out the conversion.

In May 2025, responsibility for the accommodation of international protection applicants passed to the Minister for Justice, Home Affairs and Migration.

PTA was later told the property was being removed from consideration as an accommodation centre.

PTA sought a declaration the defendant has repudiated the contract as well as damages for a number of matters, including alleged negligent misrepresentation/misstatement and breach of duty.