The High Court has awarded €160,673.05 to be held in trust for the members of Athlone Town Athletic Football Club after finding that Athlone Town Stadium Limited breached its duties as trustee. The court also dismissed the company’s counterclaim and its claim for indemnity or set-off.
In a judgment delivered on 14 November 2018, Mr Justice Richard Humphreys assessed the damages claim brought by David Dully. It followed earlier rulings in the same case, including a decision removing the company as trustee and directing the transfer of the legal interest in the stadium property to a new trustee.
The award comprises €25,978.05 for alternative playing facilities, €121,445 in VAT monies and €13,250 received from Telefonica Ireland. The judge accepted Dully’s evidence that the alternative pitch would have been ready from January 2017 but for the company’s breach of trust, making the cost of substitute facilities recoverable. He found that the company had not established a right to deduct expenses from the VAT monies or the Telefonica payment, and had not properly accounted for the latter.
The company’s counterclaim sought rent arrears of €200,433 under a 2007 lease and €27,000 under a 2015 lease, as well as interest. The judge found that neither instrument had been intended to operate as a formal lease. He also noted that the company had previously averred that the 2007 lease was invalid and that its accounts did not record the alleged rent liabilities. The judge said most of the 2007 claim was also statute-barred. The interest claim depended on the company succeeding on its counterclaim, which it did not.
The company had argued that Dully lacked standing, including because he was not properly appointed as a trustee. The judge rejected that submission, relying on earlier rulings and evidence he had accepted at the substantive hearing. He also refused a late application to amend the counterclaim to add a challenge to Dully’s trustee status.
The court ordered costs in Dully’s favour, to be held in trust for club members to discharge the costs of the proceedings. It gave Dully liberty to bring a motion seeking to have the company’s directors held personally liable for costs and, if necessary, damages. The court imposed a stay on the damages and costs until 10 December 2018, when it would consider whether to renew the stay and on what terms.