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BreakingNews.ie
3 days ago
- Entertainment
- BreakingNews.ie
Court directs Michael Flatley to provide security for costs in €30m action over Castlehyde restoration
Lord of the Dance star and potential candidate in the presidential election, Michael Flatley, has been ordered by the High Court to provide security for costs in advance of his upcoming legal proceedings against a number of parties over restoration work on his Cork mansion after a fire in June 2016. Mr Justice Eileen Roberts granted applications taken by UK building restoration firm, Austin Newport Group and various insurance underwriters seeking Mr Flatley to provide security for costs in the event they are successful in defending a €30 million legal action being taken by the dancer. Advertisement They estimate their legal costs could be €2.86 million. Ms Justice Roberts ruled that the dancer's intention to return to live in Ireland and to contest the presidential election was not a basis for refusing an order for security. Mr Flatley, who was one of the original performers in Riverdance, claims he and his family had to vacate his Castlehyde property outside Fermoy, Co Cork, in October 2023 after alleged toxic chemical residue was detected during routine maintenance. In the main legal action, he is suing Austin Newport for carrying out alleged defective restoration work after the fire as well as insurance underwriters - MS Amlin Underwriting Ltd, AXA XL Underwriting Agencies Ltd, Hamilton Managing Agency Limited and Lloyds Insurance Company. Advertisement Mr Flatley claims the various insurers had knowledge of certain issues about the alleged contamination of Castlehyde which they failed to disclose to him when negotiating a settlement agreement. Ms Justice Roberts said the application for security for costs in the case had some unusual aspects as the plaintiff was a person rather than a corporate entity who was claiming he could afford to pay any costs that might ultimately be awarded against him. The judge noted there was also a dispute about whether Mr Flatley is ordinarily resident outside Ireland as well as about the assets he held within the jurisdiction. The Riverdance performer claims he and his family had to vacate Castlehyde, the country estate he bought in 1999, after the main house became uninhabitable in October 2023. Advertisement The court heard there were various estimates on the value of Castlehyde up to €20 million. However, the defendants became concerned that there would be sufficient equity in the property to cover their legal costs if successful when they became aware there was a legal charge of €7.9 million on Castlehyde. Lawyers for the dancer had argued the application for security for costs was 'a final effort to derail' his legal action against the defendants as well as being an attempt to embarrass him. They claimed it would also be a form of discrimination if Mr Flatley as an Irish citizen with assets in the jurisdiction had an order for security of costs made against him. Advertisement Ms Justice Roberts noted that a personal plaintiff who is ordinarily resident in Ireland, cannot have an order for security of costs made against them, unlike someone living outside the EU. However, the court heard that Mr Flatley has been living in Monaco since at least 2014 and had effectively used Castlehyde as a holiday home up to October 2023. During the proceedings, Ms Justice Roberts was also informed that Mr Flatley intended moving back to live in Ireland and to seek a nomination to run for President of Ireland. Lawyers for the defendants objected to the admission of such claims on the basis they had previously been advised by Mr Flatley's lawyers that he was moving to live in Paris and later Valencia which never actually happened. Advertisement The dancer's lawyers claimed special circumstances existed which should result in the court refusing the order for security of costs. They included that Mr Flatley had expressed an intention to return to live in Ireland permanently and an undue delay by the defendants in bringing the application for security. Mr Flatley's lawyers also argued that he was 'a man of means' who had ample assets within Ireland to meet any award of costs and was 'a man of his word' who would pay any costs ordered against him. In her ruling, Ms Justice Roberts said it appeared that Mr Flatley's stated intention to return to Ireland was not open-ended or unconditional but there was no evidence he would remain living in Ireland if he was unsuccessful 'in his Presidential ambitions.' However, she ruled that he has been ordinarily resident in Monaco for more than 10 years. The judge said his intention to return to Ireland and contest the presidential election seemed at odds with his argument that he would be residing in Ireland but for the actions of the defendants. 'There appears to be no reason why the plaintiff could not previously have returned to live in Ireland even if Castlehyde was uninhabitable,' she added. The judge noted he has also taken a commercial decision not to live in Castlehyde due to an agreement in September 2023 to lease the house for an annual minimum rent of €1.35 million. Ms Justice Roberts said she could not take into account Mr Flatley's rights to the Lord of the Dance which were variously valued at between £90 million Stg (€104 million) and €200 million in assessing the sufficiency of his assets within Ireland. She made a similar finding in relation to Flatley Whiskey Limited as she observed that the dancer had not provided any evidence of his ownership of the company which was valued at €10 million. The judge said taking a midway point of €9.5 million on valuations on Castlehyde was fairest to all parties which would leave net equity of €1.6 million allowing for secured debt on the property. Ms Justice Roberts ruled Mr Flatley is in Ireland on a temporary and conditional basis and the defendants'' actions had not caused him to live in Monaco. The judge said he had not discharged the burden of proof to show he had sufficient assets within the EU against which a successful defendant could enforce a costs order. She instructed the parties to file and exchange written submissions about the amount of the security by November 14th.
Irish Times
08-07-2025
- Business
- Irish Times
Michael Flatley says request for €2.8m as security for costs an attempt to embarrass him
Lord of the Dance star Michael Flatley has claimed that a court application seeking he put up €2.8 million security for costs in advance of his upcoming action over works carried out at his Cork mansion is 'a final effort to derail my claim.' The entertainer, in a sworn statement opened to the Commercial Court on Tuesday, said the application was also an attempt to embarrass him. Flatley's counsel Ronnie Hudson BL, instructed by solicitor Maxwell Mooney, told the court that the dancing star is an Irish citizen and has assets in this jurisdiction, and he contended it could be 'a form of discrimination' if the court were to make an order for security of costs against him. Ms Justice Eileen Roberts has been asked by the parties being sued over work carried out on Castlehyde in Fermoy after a 2016 fire to order that as much as €2.8 million be lodged in court in advance of the hearing of the action. READ MORE A security for costs application is usually made when the defendants in the case apply to the court seeking to have their costs covered if they end up successfully defending the main proceedings. The application in the Flatley case is expected to last two days. In the main proceedings, the Riverdance performer claims he and his family had to vacate the Castlehyde period property in October 2023 after alleged toxic chemical residue was detected during routine maintenance. Flatley is suing Austin Newport Group Ltd, the main contractor and insurance underwriters – MS Amlin Underwriting Ltd, AXA XL Underwriting Agencies LTD and Hamilton Managing Agency Limited along with Lloyds Insurance Company. All of the allegations are denied. In an affidavit, Flatley said the Lord of the Dance show is continuing to sell out venues worldwide, and he had spent the last 30 years of his life travelling the world promoting Ireland and Irish culture globally. He said Lord of the Dance has sold over €1 billion worth of tickets. Lord of the Dance, which he said had received 'a lifetime of standing ovations', has been valued 'at a conservative minimum of €200 million. Mr Flatley also said a section of New York's 42nd Street was renamed Flatley Way in recognition of his Irish-American cultural work. Flatley said his Statement of Affairs, which valued Lord of the Dance at €200 million, his whiskey business at €10 million and his Castlehyde mansion at €20 million, is accurate. He said he owns all of the rights and intellectual property for Lord of the Dance, and the valuation could be double the €200 million figure. He said his liability is a €7.9 million mortgage on Castlehyde, which will be repaid from his business activities over the next two years. He said he agreed with the €20 million valuation on Castlehyde, and he regarded the suggestion that a €10.5 million valuation by the defendants for the mansion is in any way credible as 'complete nonsense.' Flatley, in the affidavit which was sworn last month, also said he 'intends to return to live in Ireland permanently as soon as possible'. Andrew Fitzpatrick SC, for the underwriting and insurance defendants, submitted Flatley lives in Monaco, outside the EU. He said Flatley's suggestion that Lord of the Dance could be worth €400 million was a 'wild assertion.' The entertainer, he said, has repeatedly stated in court documents that he is a man of means and has means to pay costs, and the court could take comfort in the fact that if it makes the order for security for costs it won't stop Flatley's access to the courts. The question to be answered, counsel said, is whether Flatley has sufficient or ample assets in this jurisdiction against which an order for costs can be forced. He said his clients were concerned there are not sufficient assets in this jurisdiction and he contended the €20 million value Flatley puts on his Castlehyde mansion should be discounted. The application for security for costs continues on Wednesday.
