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Michael Flatley being portrayed as ‘villain rather than victim' in mansion dispute, court hears

Michael Flatley being portrayed as ‘villain rather than victim' in mansion dispute, court hears

Lord of the Dance star Michael Flatley is being portrayed in proceedings before the Commercial Court as 'a villain' rather than 'a victim of circumstances', his barrister told a judge on Wednesday.
It was the second day of two applications before the court where a building contractor and insurance companies involved in carrying out works at Mr Flatley's Castlehyde mansion in Co Cork are seeking to have the star put up €2.8 million security for costs before his action against them begins.
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Michael Flatley refused access to documents in row over legal fees and receiver costs
Michael Flatley refused access to documents in row over legal fees and receiver costs

Irish Times

timean hour ago

  • Irish Times

Michael Flatley refused access to documents in row over legal fees and receiver costs

Lord of the Dance star Michael Flatley has suffered a setback in his legal row over a €1.4 million disputed costs bill associated with his recent battle to keep a receiver from the door of his Cork mansion, Castlehyde. The entertainer, in an affidavit opened last May before the Commercial Court where he is disputing legal and receiver fees, claimed he was shocked at what he called the 'blatant' level of alleged 'overcharging'. Referring to a receiver costs bill of €86,000 plus legal costs of €186,000, Mr Flatley alleged he may be seen 'as an easy mark for inflated costs'. Also in dispute are €793,000 in legal fees from the opposing side in the Castlehyde receiver battle. But Mr Justice Mark Sanfey on Tuesday refused the Flatley side's application for key documentation from Novellus Finance Ltd and the receivers who were appointed over Castlehyde. Mr Flatley's legal team want the documentation as part of their bid to have all of part of the €1.4 million disputed costs lodged in court returned. READ MORE In his judgment, Mr Justice Sanfey said the Flatley side have 'to use a colloquial expression put the cart before the horse'. The allegations of overcharging are very serious, the judge said, and required to be pleaded appropriately before any question of the adequacy of documents furnished or the need for discovery of further documentation could be considered. He said the Flatley application was 'premature and inappropriate'. To accede to it 'would be to permit a trawl through sensitive and confidential documentation in circumstances where the Flatley allegations have not been formally articulated in pleadings'. The other side, the judge said, must be given an opportunity to meet the allegations made against them and respond as they see fit before the question of whether they must provide supporting documentation for their claims, arises. Mr Justice Sanfey commented that an application to court as was contemplated by the Flatley side did not seem appropriate in relation to the question of legal or receivers costs 'in circumstances where there are statutory mechanisms for appropriate interrogation of such claims and production of documentation relevant to them'. Mr Flatley paid off a €6.9 million loan on his Castlehyde mansion last March to save it from the receiver. The original legal battle related to a loan made to Mr Flatley's Blackbird Film Productions Ltd by Novellus Finance Ltd, with registered offices at St Stephen's Green, Dublin, in 2023 with repayments of €67,000 per month over two years. Novellus claimed there had been default on repayment, which Mr Flatley denied. Mr Flatley had provided a guarantee for the loan on the strength of the value of his Castlehyde mansion. As a result of the alleged default, Novellus appointed a receiver over the property. An interim injunction was granted to the Flatley side to prevent the receiver from taking further measures in relation to Castlehyde and a judge conducted a two-day hearing on the matter. The Flatley side asked the court to hold off on giving judgment on whether to set aside the interim injunction stopping the receiver taking steps or grant an interlocutory injunction to the Flatley side and said Mr Flatley was flying into Dublin to pay off the loan. The €6.9 million loan was finally paid off but the issue of certain disputed costs remained. In his judgment, Mr Justice Sanfey said Mr Flatley had refinanced the loan from Novellus and redeemed the mortgage and had 'effectively withdrawn the proceedings' and consented to an order that he pay the costs of the proceedings to the defendants. As such, the judge said the issues between the parties as set out in the proceedings have been resolved and the various allegations by Mr Flatley against the defendants must be regarded as withdrawn. 'Notwithstanding this, Mr Flatley now seeks to make a new range of allegations against the defendants in relation to alleged overcharging in respect of legal and receivers costs and in relation to interest.' The judge said allegations of this nature are extremely serious, particularly for professional defendants such as the receivers. The allegations were not part of the original proceedings, he said, and do not find expression anywhere other than in Mr Flatley's affidavit. The defendants, he said, strenuously deny that there has been any overcharge. The judge said pleadings are absolutely necessary to bring definition and clarity to the allegations made by Mr Flatley.

Michael Flatley suffers setback in €1.4m legal costs row
Michael Flatley suffers setback in €1.4m legal costs row

Irish Examiner

time3 hours ago

  • Irish Examiner

Michael Flatley suffers setback in €1.4m legal costs row

Lord of the Dance star Michael Flatley has suffered a setback in his legal row over a €1.4m disputed costs bill associated with his recent battle to keep a receiver from the door of his Cork mansion, Castlehyde. The entertainer, in an affidavit opened before the Commercial Court last May, where he is disputing legal and receiver fees, claimed he was shocked at what he called 'the blatant level' of alleged "overcharging'. Referring to a receiver costs bill of €86,000 plus legal costs of €186,000, Mr Flatley alleged he may be seen "as an easy mark for inflated costs". Also in dispute are €793,000 in legal fees from the opposing side in the Castlehyde receiver battle. But Mr Justice Mark Sanfey on Tuesday refused the Flatley side's application for key documentation from Novellus Finance Ltd, and the receivers who were appointed over Castlehyde. The Flatley side want the documentation as part of their bid to have all of part of the €1.4m disputed costs lodged in court returned. In his judgment, Mr Justice Sanfey said the Flatley side had ' to use a colloquial expression, put the cart before the horse'. The allegations of overcharging are very serious, the judge said, and required to be pleaded appropriately before any question of the adequacy of documents furnished or the need for discovery of further documentation could be considered. He said the Flatley application was 'premature and inappropriate', and to accede to it 'would be to permit a trawl through sensitive and confidential documentation in circumstances where the Flatley allegations have not been formally articulated in pleadings'. The other side, the judge said, must be given an opportunity to meet the allegations made against them and respond as they see fit before the question of whether they must provide supporting documentation for their claims arises. Mr Justice Sanfey commented an application to court as was contemplated by the Flatley side did not seem appropriate in relation to the question of legal or receivers costs 'in circumstances where there are statutory mechanisms for appropriate interrogation of such claims and production of documentation relevant to them'. Last March, Mr Flatley paid off a €6.9m loan on his Castlehyde mansion to save it from the receiver. The original legal battle related to a loan made to Mr Flatley's Blackbird Film Productions Ltd by Novellus Finance Ltd, with registered offices at St Stephen's Green, Dublin, in 2023, with repayments of €67,000 per month over two years. Novellus claimed there had been default on repayment, which Mr Flatley denied. Mr Flatley provided a guarantee for the loan on the strength of the value of his Castlehyde mansion. As a result of the alleged default, Novellus appointed a receiver over the property. An interim injunction was granted to the Flatley side to prevent the receiver from taking further measures in relation to Castlehyde, and a judge conducted a two-day hearing on the matter. The Flatley side asked the court to hold off on giving judgment on whether to set aside the interim injunction stopping the receiver taking steps, or grant an interlocutory injunction to the Flatley side and said Mr Flatley was flying into Dublin to pay off the loan. The €6.9m loan was finally paid off but the issue of certain disputed costs remained. In his judgment, Mr Justice Sanfey said Mr Flatley had refinanced the loan from Novellus and redeemed the mortgage and had 'effectively withdrawn the proceedings", and consented to an order that he pay the costs of the proceedings to the defendants. As such, the judge said the issues between the parties as set out in the proceedings had been resolved, and the various allegations by Mr Flatley against the defendants must be regarded as withdrawn. 'Notwithstanding this, Mr Flatley now seeks to make a new range of allegations against the defendants in relation to alleged overcharging in respect of legal and receivers costs and in relation to interest.' The judge said allegations of this nature were extremely serious, particularly for professional defendants such as the receivers. The allegations, he said, were not part of the original proceedings and did not find expression anywhere other than in Mr Flatley's affidavit. The defendants, he said, strenuously deny that there has been any overcharge. The judge said pleadings were absolutely necessary to bring definition and clarity to the allegations made by Mr Flatley.

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