The ICBF has been told by a High Court judge that its lease on the building it rents in Ballincollig, Co Cork, is not affected by an agreement between the company which owns the building and a former director of the same company.
The total value of the dispute exceeds €1m.
Vespolina Ltd is the owner of the Supernova building, which the ICBF partly rents in Ballincollig, Co Cork.
The ICBF had entered into an agreement with Vespolina to lease the upper floor of the property for 15 years.
ICBF has sought the opinion of the High Court as to whether the alleged option granted to Montgomery affects Vespolina’s title to grant the lease to ICBF
However, ICBF claims that as a result of an agreement between Paul Montgomery, the former sole director of Vespolina, and Vespolina, Montgomery has an option to purchase the freehold in the property or, failing that, a right of first refusal on the sale of the freehold in it.
ICBF has sought the opinion of the High Court as to whether the alleged option granted to Montgomery affects Vespolina’s title to grant the lease to ICBF.
The participation agreement was not disclosed to ICBF by Vespolina when it entered into the lease, court documents show.
The ICBF is paying annual rent on the building of €360,000 plus VAT service charge and ICBF has spent approximately €800,000 on fitting out the property. The total value of the dispute exceeds €1m, the documents show.
Justice Michael Twomey concluded that the rights granted to Montgomery do not constitute an option on his part to buy the property and therefore his rights do not affect Vespolina’s title to grant a lease.
The ICBF moved to Ballincollig from its previous base in Shinagh, also in Cork, where it was based since its foundation in 1998.