The High Court has awarded Mary Collins €4.58 million after three purchasers failed to complete a €5 million land deal involving 16.19 acres at Cloonglebe, Co Kerry.
Mrs Collins agreed in March 2007 to sell the land to Frank Gleeson, Declan Gleeson and P.J. Gleeson. The deal also required the purchasers to build four houses for her at no cost and to provide roads, services and easements benefiting retained lands.
The purchasers paid a €500,000 deposit. The agreed closing was in March 2009. They did not complete and later claimed that the contract had ended through frustration because planning permission could not be obtained within the expected timeframe, largely due to delays in providing an upgraded wastewater treatment plant for Ardfert.
Mr Justice Feeney rejected that defence. He found that the contract was not conditional on obtaining planning permission. Instead, it required the purchasers to apply for permission and allowed post-completion obligations concerning roads and services to be performed later.
The court found that the Gleesons were experienced builders and developers and knew when they entered the agreement that development depended on an upgraded wastewater system. They nevertheless chose a two-year timeframe and, in May 2008, confirmed through their solicitors that they had executed unconditional contracts, despite already knowing significant delays were likely.
The judge held that planning delays were foreseeable and did not amount to an unexpected supervening event capable of frustrating the agreement. The plaintiff was ready, willing and able to close when completion was required.
Mrs Collins had originally sought specific performance but elected in August 2010 to claim damages instead.
The court valued the contracted land at €400,000 at that date, compared with the €5 million agreed price, producing a €4.6 million loss. It added €480,000 for the four houses that should have been provided, then accounted for the €500,000 deposit already retained.
Judgment was entered for €4.58 million, together with court-rate interest from 4 August 2010 to judgment. The purchasers’ counterclaim was dismissed.