Reilly sued by co-debtor for failing to sell nursing home

JAMES Reilly’s hopes of paying off his part of a €1.9million debt have been dealt another blow as another case against the Health Minister has come before the High Court.

Dr Reilly is being sued by another investor in the Greenhills nursing home project in Co. Tipperary.

The High Court heard that Dr Reilly is at odds with other co-debtors because he has agreed to the sale of the nursing home – to clear his debt and protect his position in Government – while three of the investors ‘dispute’ it. Dr Reilly is one of 13 owners of the nursing home in a deal that dates back to 2000. Last year, five investors, including Dr Reilly, were ordered to pay €1.9million after they were accused of walking away from the deal to buy Greenhills in Carrick-on-Suir.

All five were named as defaulters in Stubbs Gazette, and Dr Dilip Jondhale was issued with bankruptcy proceedings. He later took a court action against the other four to force a sale of the care home. Dr Jondhale has offered to buy the premises from the 12 other investors for €2.6million if a sale is approved. This would pay off the total debt and keep Dr Jondhale out of bankruptcy.

Although Dr Reilly, who in a separate case last week was sued over an alleged unpaid debt to an architect’s firm, has agreed to that proposal, debtors ex-Fine Gael councillor Anne Devitt, architect Paul Kelly and Dubliner Ciarán Flanagan dispute it.

Dr Jondhale’s case came before the court yesterday because he was seeking an order for the immediate sale of Greenhills after three of the defendants failed to file a defence to the action. The court previously heard that Dr Reilly was the only who had submitted a defence. After being told that the other three have delivered their defences, Mr Justice John Cooke agreed to strike out the motion against them for ‘judgment in default of defence’.

Dr Reilly wasn’t in court. His former colleague Anne Devitt who was at the hearing, declined to comment. It is understood that negotiations will now begin between the parties. If no agreement is reached, the case will to go to trial later this year.