In what defending solicitor Rory O’Connor described as the ‘worst case of Celtic Tiger-ism going’, a Castlebar man who is owed €260,000 by a company has been sued for €27,417.17 by the liquidator of that company.
John Mulroy of J Mulroy Builders Limited, Castlebar was the subject of a civil action by the liquidator of Western Pride Bakeries (Ballinrobe) over legal costs arising out of a High Court action taken by Mr Mulroy.
Describing how perverse the situation was to Judge Denis McLoughlin, Rory O’Connor, for Mr Mulroy, said that his client was owed €260,000 by Western Pride. At a creditors’ meeting, Mr Mulroy had, as the largest creditor, challenged the appointment of the liquidator through a nominee of his.
Mr O’Connor said that the liquidator ruled the nominee present was invalid and that Mr Mulroy had no choice but to challenge the appointment in the High Court, who ruled against him. As a consequence, costs were awarded to the liquidator. Original costs were put at €41,000 but cost accountants working for both sides had agreed on costs of €27,417.17
The court heard that Mr Mulroy’s company was ‘ruined’ by the debt of €260,000. Rental income of various units was all pledged towards Ulster Bank and he was being supported by his wife, who is working and had no direct income himself.
Judge Denis McLoughlin made a nil order as it had been proven that Mr Mulroy could not pay back any money at this time. He told counsel for the liquidator that they could go after Mr Mulroy again if he did come into money in the future.