The High Court has refused Michael Flatley and Blackbird Film Productions Limited’s application for further documents concerning legal fees, receiver costs and interest linked to a Novellus Finance loan secured on Castlehyde in Fermoy, Co Cork.
Mr Justice Mark Sanfey held that the plaintiffs were seeking discovery before formally setting out the new claims they intend to make. He said allegations of excessive charging were serious and had to be defined in pleadings before the court could assess what further documents were relevant or necessary.
Novellus agreed in September 2023 to lend Blackbird Film Productions €5,696,851 to refinance liabilities connected with the film “Blackbird”. The loan was secured by a mortgage over Castlehyde and guaranteed by Flatley.
Following alleged breaches, Novellus made demands in October 2024 and receivers were appointed over Castlehyde in December. Flatley obtained an interim injunction, but the loan was later refinanced and redeemed. Disputed sums were paid into court while the parties reserved their positions.
Flatley said about €1.4 million had been lodged as disputed costs and challenged receiver fees, legal costs and interest. He sought detailed timesheets, receiver records, third-party invoices, legal files and documents explaining the contractual basis for what he described as penalty interest.
The court found that the original proceedings had effectively been withdrawn and that the plaintiffs had consented to pay the defendants’ litigation costs, subject to adjudication if not agreed. The new overcharging allegations were therefore outside the existing pleaded case.
Mr Justice Sanfey also held that the Legal Services Regulation Act provides a specific mechanism for examining legal costs and certain receiver costs. A Legal Costs Adjudicator can inspect documents, assess whether charges are reasonable and penalise a party that fails to provide required records.
The application was refused. The ruling does not decide whether any fee, receiver charge or interest amount was excessive or unlawful; those issues remain open to be pursued through properly formulated proceedings or the statutory costs process.