By Aisling Byrne
The Commercial Court has ordered Goldstein Property ICAV to provide €944,460 as security for RELM's legal costs in a dispute over receivers appointed to a portfolio of 47 commercial properties in Ireland.
Mr Justice Twomey also concluded that Goldstein should not have commenced separate proceedings in New York seeking documents from Avenue Capital Group, RELM's indirect owner, without first notifying or obtaining directions from the Irish Commercial Court.
Goldstein claims in the main proceedings that RELM is prevented, or estopped, from calling in loans and appointing receivers because of alleged representations about extending its lending facilities. RELM disputes that claim.
Goldstein launched a US application in October 2025 seeking discovery from Avenue for use in the Irish proceedings. RELM sought an injunction stopping that litigation, alleging that Goldstein was using the New York process to impose potentially millions of dollars in unrecoverable costs and pressure RELM and Avenue into settling.
Goldstein denied that allegation and maintained that it was entitled to gather evidence abroad.
Twomey J found that Avenue could possess documents relevant to the Irish dispute. However, he said Goldstein should first have explored less costly alternatives, including voluntary discovery from Avenue or RELM, or whether relevant material could be obtained through Avenue's Dublin branch.
The judge also relied on evidence that Goldstein's US lawyers had sent copies of the New York proceedings to sales agents and prospective buyers of the receivership properties. He viewed that as supporting RELM's claim that litigation costs were being used as leverage.
The court said it would in principle have granted an anti-suit injunction because the New York proceedings undermined the Commercial Court's case-management role and objective of minimising costs. But by July 2026 the US application had been fully argued and was awaiting judgment, so the court considered an immediate injunction potentially unnecessary and reserved final orders pending further submissions.
Separately, the court found Goldstein unable to meet RELM's legal costs if it lost and rejected the argument that RELM had caused that financial position. Security was therefore ordered in the full estimated amount of €944,460, excluding VAT.