Two Irish property investors have lost their claim for damages after their £43m deal to buy Galliard Homes’ Wharfside development in
The legal claim centred on an agreement in 2006 between Galliard subsidiary Boatport and two investors David Albericci, the former head of corporate banking at ACCBank, and Barry Kenny.
The investors’ company Regency Flats had agreed to purchase all of the 171 flats for £43.4m with a view to pre-sell the flats to sub-purchasers, many of whom were purchasing for buy-to-let purposes.
The agreement provided that Boatport should use “all reasonable endeavours” to procure completion of any sub-sale contract including serving promptly any completion notices as flats were finished.
However, the investors alleged that 57 flats were “finished” by mid-November 2008 but that Boatport failed to serve completion notices until 26 January 2009.
They claimed that “in the febrile market atmosphere after the fall of Lehmans” this delay of just over two months was crucial and caused them significant loss.
Dismissing the investors’ claim Charles Hollander QC sitting as a deputy judge of the High Court ruled that on the evidence the flats were not ‘finished’ until about 26 January 2009 and thus their claim failed.
