The High Court has ordered Dengrove Designated Activity Company to disclose records relating to alleged compromise agreements with Pat Ryan’s co-partners and to any change or proposed change in interest rates charged or secured on properties in Dublin 2.
Mr Justice Twomey made the discovery orders on 19 January 2022 in proceedings over mortgages connected with properties on City Quay, Moss Street and Gloucester Street. The judgment did not decide how much was required to redeem the mortgages. That interpretation remains for the trial judge.
The dispute concerns whether the properties could be released from security for about €22 million in partnership borrowing, as Ryan contends, or whether the security covers about €430 million owed by the partners to Dengrove. Those figures and the competing positions are described in the judgment; the court did not resolve the underlying mortgage dispute in this discovery application.
Ryan relied on emails sent anonymously to his son, as well as Dengrove’s 2018 financial statements, when amending his Statement of Claim in April 2021. He alleged that Dengrove had reached compromise arrangements with co-partners and had encouraged increased interest charges to reduce tax liabilities, affecting his ability to redeem the properties. These were allegations, not findings in this judgment.
The judge found that the amended allegations had some evidential support and crossed the limited threshold for access to relevant documents. He also said some disclosure affecting the partners’ financial confidentiality was justified to ensure a fair resolution, but it had to be proportionate.
The court refused Category A, which sought records about the €430 million said to be secured on the properties. The issue had been covered by earlier discovery, and Ryan had proceeded to trial without seeking further and better discovery. The court also refused Category E, which sought a broad range of communications between Dengrove and the co-partners about their debts, finding it an unjustified trawl into confidential information.
Category D, seeking documents relating to compromise agreements between Dengrove and Ryan’s co-partners, was ordered. The court also ordered a narrowed version of Category F: documents, board minutes or other records referencing any change or proposed change to the interest rate charged or secured on the properties. The judgment did not make findings that the alleged agreements or interest-rate conduct occurred.
The judge asked the parties to try to agree outstanding matters without further court time. If needed, the case was provisionally listed for mention one week later, at 10.45 am.