Flatley Costs Challenge: Cork Mansion Case
Michael Flatley Faces €2.8m Security for Costs Demand in Castlehyde Mansion Dispute
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Entertainer michael flatley is facing a demand to lodge up to €2.8 million with the High Court as security for costs in his upcoming legal action concerning works carried out at his Cork mansion, Castlehyde.The application, heard before Ms Justice Eileen Roberts, stems from a dispute over renovations following a fire at the property.
Security for Costs Application Explained
The security for costs application was brought by the defendants – underwriting and insurance companies - seeking assurance that they can recover their legal costs shoudl they successfully defend the main proceedings. The hearing is expected to last two days. This type of application is common when a plaintiff resides outside the jurisdiction, raising concerns about the enforceability of a costs order.
Flatley’s Assets Under Scrutiny
Counsel for the defendants, Andrew Fitzpatrick SC, highlighted that Mr. Flatley resides in Monaco, outside of both the EU and the free trade area. He detailed Mr. Flatley’s self-reported asset valuations, initially stating a €200 million valuation for his Lord of the Dance show, €10 million for his whiskey business, and €20 million for Castlehyde.
Though, Fitzpatrick SC questioned the reliability of these figures, noting a later claim by Mr. Flatley that the Lord of the Dance show could be worth €400 million – a claim he described as a “wild assertion.” He emphasized that these were “assertions, not valuations,” and lacked supporting detail regarding liabilities.
Fitzpatrick SC argued that the court needed to determine whether Mr. Flatley possesses sufficient assets within Ireland against which a costs order could be enforced.He suggested the €20 million valuation placed on Castlehyde by Mr. Flatley should be discounted.
Concerns Over Asset Location
The court heard that Mr. Flatley has lived in Monaco for ten years, and his future location has been subject to change. counsel noted previous indications that Mr. Flatley might move to France or Spain, but he ultimately remained in Monaco. This raised concerns about the accessibility of assets should the defendants be prosperous in the main action.
fitzpatrick SC assured the court that granting the security for costs order would not impede Mr. Flatley’s access to the courts.
The Core Dispute: Alleged Toxic Residue at Castlehyde
The main legal action centres around claims that mr. Flatley and his family were forced to evacuate Castlehyde in October 2023 after the detection of alleged toxic chemical residue during routine maintenance. He alleges this residue stems from PVC combustion during a fire at the property in June 2016.
Mr. Flatley is suing Austin Newport Group Ltd,the main contractor responsible for the renovations,as well as insurance underwriters: MS Amlin Underwriting Ltd,AXA XL Underwriting Agencies LTD,and Hamilton Managing Agency Limited,along with Lloyds Insurance Company.
he claims the unsafe levels of chloride residue were known to Austin Newport. However, Fitzpatrick SC stated that his clients do not accept the presence of “toxins” at Castlehyde and that no toxicology report has confirmed their existence.
All allegations are currently denied, and the application for security for costs is ongoing.