School Dispute Scuttles €23 Million Land Deal in Dublin
A major property transaction in Leopardstown, Dublin, has collapsed due to disagreements about constructing a school. The €23 million deal between a developer and the Legionaries of Christ fell apart, leading to a legal battle in the Commercial Court.
Failed Agreement Details
The Commercial Court heard of the failed sale of land owned by the Legionaries of Christ to Rimor Magna Ltd. The agreement stipulated that along with the sale, a new faith center and school would replace existing facilities. The total value of the land was €23 million.
The sale’s demise was triggered by the rejection of a 2022 planning application submitted to Dún Laoghaire-Rathdown Council. This application encompassed the proposed school, faith center, and two office buildings. The council’s rejection was due to non-compliance with Department of Education standards.
“Insofar as the congregation is concerned, that was or should have been the end of the matter,”
—Fr Mariano Ballestrem, Manager of the congregation’s affairs in Ireland
Rimor has sought to stop the religious order from canceling the sale contract. Marcus Dowling SC, representing the defendants, requested an expedited hearing to prevent a substantial damages claim. Conversely, Niall F Buckley SC, for Rimor, indicated his clients believed the Department of Education would support the plan, which was not the case.
The demand for education in Ireland is increasing, with enrollment in primary schools exceeding 560,000 students in 2023 (Department of Education).
Key Players and Claims
Mr. Justice Mark Sanfey deemed the case appropriate for the commercial list, approving the parties’ agreed directions and postponing it until November. The Legionaries of Christ terminated the contract with Rimor in November 2024, citing the latter’s failure to meet planning permission conditions.
Fr Ballestrem stated in an affidavit that the trustees also returned the €2.3 million deposit. Rimor’s legal action centers around an individual they claim acted as an agent for the congregation. This person allegedly misrepresented Department of Education requirements before the planning application.
Following the application’s rejection, the individual claimed the department would accept a single mainstream school. At a 2023 congregation meeting, this strategy was not approved. The congregation disputes this individual’s role or authority in their dealings with Rimor.
Rimor alleges spending over €1.7 million in their efforts to obtain planning permission, which the defendants deny. The defendants reject all claims, including any claims for damages raised by Rimor.