The High Court has awarded Campion Property Consultants Limited €356,386.99 after rejecting claims that it mishandled the €3.7 million auction sale of three adjoining properties in Sandycove, County Dublin.
Brendan Kilty had acquired the properties with a view to development, but two planning applications failed and his lender began repossession proceedings. His solicitor then introduced him to auctioneer Tadhg Campion, who secured time from the building society and prepared the properties for sale.
A public auction took place on April 28, 2004. Beforehand, a consortium connected with Kilty’s solicitor had offered €3.6 million for the entire site and agreed to leave that offer available. The three properties were first offered separately, attracting combined bids of €3.3 million, before the entire holding was put up. It sold to an independent purchaser, Mr Murphy, for €3.7 million.
Kilty later refused to pay Campion’s invoice and alleged failures in marketing and conducting the auction, breach of fiduciary duty and failure to negotiate a reduction in his debt to the building society. At trial he also alleged collusion involving Campion and his former solicitor.
Mr Justice McMahon rejected those allegations. He found no evidence supporting a conspiracy or an attempt to acquire the property at an undervalue. The judge accepted that Campion briefly left the auction room, consulted Kilty and his wife, and received authority to put the entire property on the market.
The court also found that the auction method was professionally defensible and that there was no evidence a higher price could have been achieved. Campion had carried out an intensive advertising and viewing campaign, while an earlier €3.5 million bidder had made clear he would not increase his offer.
McMahon J further held that Campion had not guaranteed a reduction in the mortgage debt, but had undertaken only to use his best efforts.
The judge found for Campion and awarded €356,386.99. He added that Kilty’s signing of the sale contract and later completion of the transaction also retrospectively ratified Campion’s conduct.