Irish Promoters Reach Settlement

The High Court battle Eamonn McCann and Denis Desmond were having over the breakup of their business relationship was stopped short as both sides agreed to an out-of court settlement.

Counsel for McCann and Desmond will return to the Dublin High Court Jan. 12 to implement the settlement of what could have turned out to be a multimillion-dollar lawsuit.

The two Irish promoters had fallen out over the amount Desmond should pay McCann to buy out his share of MCD, the partnership the two started in 1980.

In 2006 the pair allegedly agreed to an amount based on 4.66 times the average net profits of the partnership for the years 2003, 2004 and 2005.

The areas of disagreement included the nature of their business relationship and how profits, overheads and expenses were calculated. The latter appears to have been a particular issue as McCann reckoned he was due euro 3.8 million while Desmond put the figure at closer to euro 104,680.

The news of the settlement came Dec. 16, the eighth day of the Dublin High Court hearing, when Mr. Justice Brian McGovern was told that – “after considerable efforts” – the differences between the parties had been resolved.

Justice McGovern, who has been hearing about the squabbles between Desmond and McCann since proceedings began in November 2009, adjourned the hearing and agreed the case should be listed for Jan. 12, when the resolution will be implemented.

The judge has repeatedly requested the two parties try to resolve their differences for themselves. In February he was to hear the case in the commercial division of the High Court, but adjourned because he said he preferred to deal with the issue in what court officials referred to as “more digestible portions.”

The settlement between Desmond and McCann also covers a separate action that was also to be heard in the Dublin High Court and a third action that was due to be heard in Northern Ireland.

Neither side has commented on the outcome.