'Out-of-court' settlement due in Eyre Square row
Date Published: {J}
BY ENDA CUNNINGHAM
An ‘out-of-court’ settlement is expected to be reached in the coming weeks between Galway City Council and the original contractor who ‘walked off’ the site of the controversial Eyre Square enhancement scheme in 2005, the Galway City Tribune can reveal.
This newspaper has learned that discussions are ongoing at the moment between the Council’s legal team and representatives of Samuel Kingston Construction Ltd (SKCL).
The settlement talks come 18 months after a Supreme Court ruling to overturn a decision in favour of original contractors Samuel Kingston Construction.
A spokesperson for the Council told the Galway City Tribune this week that discussions are taking place between legal teams on both sides, but refused to comment on whether a settlement was imminent.
However, this newspaper understands that both parties are nearing a settlement – if agreement cannot be reached, they must re-enter the lengthy arbitration process, which the local authority has already successfully challenged in the country’s highest court.
In March 2010, the Council secured a Supreme Court ruling setting aside a decision made by an arbitrator in October 2008 which found in favour of Cork-based Samuel Kingston Construction Ltd (SKCL), and a subsequent High Court appeal which also found in favour of SKCL.
In his 60-page judgment at the time, Supreme Court Justice Donal O’Donnell said the matter would need to be heard by a new arbitrator if agreement could not be reached between both parties.
Part of the local authority’s argument to have the original decision set aside was that arbitrator Geoffrey Hawker had fallen asleep during part of the process.
The ongoing row centres on the alleged ‘walk-out’ from the Eyre Square redevelopment project by SKCL in June 2005. The Council took the action against defendants SKCL and Geoffrey Hawker. They also sought the removal of Mr Hawker as arbitrator, claiming that he was guilty of serious misconduct. The €6.3m contract for the revamp of Eyre Square was signed on April 5, 2004, between the City Council and SKCL, with the work to be completed by August 2005.
For more, read this week's Galway City Tribune.