Flatley Loses Bid for Costs Documents

Court Cites ‘Premature’ Legal Move in Mansion Dispute

A significant legal battle involving entertainer Michael Flatley has taken a turn as his attempt to obtain crucial documentation in a €1.4 million costs dispute was denied.

Court Rules Against Disclosure Request

The star, known for “Lord of the Dance,” is contesting charges related to a receiver appointed to his Cork mansion, Castlehyde. Mr Justice Mark Sanfey ruled that Flatley‘s request for documentation from Novellus Finance Ltd and the Castlehyde receivers was “premature and inappropriate.”

Flatley‘s legal team sought the documents to support their claim for the return of disputed costs, which include receiver fees, legal costs, and fees from the opposing side, amounting to €1.4 million. Mr Justice Sanfey stated that the allegations of overcharging needed to be formally articulated in pleadings before discovery could be considered.

“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.”

—Mr Justice Mark Sanfey

The judge added that allowing such a request would permit a “trawl through sensitive and confidential documentation” without formal articulation of the claims. He emphasized that the opposing parties must have an opportunity to respond to the allegations before being compelled to provide supporting documentation.

Loan Resolution and Lingering Costs

The dispute originated from a loan made to Flatley‘s Blackbird Film Productions Ltd by Novellus Finance Ltd. Novellus alleged a default on repayments, which Flatley denied. His Castlehyde mansion was provided as a guarantee.

In March, Flatley settled a €6.9 million loan on Castlehyde, thereby averting receivership. However, the issue of certain disputed costs persisted. The court noted that Flatley had effectively withdrawn initial proceedings related to the loan after refinancing and redeeming the mortgage.

Mr Justice Sanfey commented that statutory mechanisms exist for interrogating such cost claims, suggesting an alternative avenue for Flatley. Legal experts note that detailed expense breakdowns are standard in litigation, and formal challenges require precise pleadings, similar to how tax authorities in Ireland scrutinize large expense claims, which can range from business expenditure reviews to detailed forensic accounting investigations.

Allegations of Overcharging Denied

Flatley had claimed in an affidavit to be shocked at the “blatant level” of alleged “overcharging,” suggesting he might be viewed as “an easy mark for inflated costs.” The defendants, however, strenuously deny any overcharge.

The judge highlighted the seriousness of such allegations, particularly against professional defendants like receivers, and stressed the necessity of proper pleadings for clarity. These claims were not part of the original proceedings but were instead articulated in Flatley‘s affidavit.