Waterford ordered to pay “substantial” fees to Kilkenny and Dunnes after Ferrybank Shopping Centre disaster
Ferrybank Shopping Centre
Following Waterford’s withdrawal of their judicial review concerning Ferrybank Shopping Centre, the local authority will now have to foot the bill for all legal costs incurred by both opposing parties, namely Kilkenny County Council and Dunnes Stores.
Although the exact costs are not yet clear, it was revealed today that they will be substantial.
Significant insights into the legal proceedings surrounding Ferrybank Shopping Centre were provided at a meeting this afternoon by Chief Executive of Waterford City and County Council, Sean McKeown.
During the meeting held in City Hall, Mr. McKeown told all 32 elected members of the Council, senior council executives and members of the press, that he takes full responsibility for initiating the failed legal proceedings against Kilkenny County Council.
“I want to clarify and confirm that it was myself that initiated the proceedings. The elected members had no part in that” he said.
Mr. McKeown, who is an ex-employee of Kilkenny County Council, confirmed that the proceedings initiated by Waterford Council against Kilkenny Council were withdrawn earlier this week.
During today's meeting, he also discussed why he made the decision to challenge Killenny over the vacant shopping centre.
Whilst addressing the issue in depth before the Council, Mr. McKeown said he must exercise care due to legal sensitivities.
“I don’t want to open debate on the matter, because it is a sensitive one that has been through the court, but it is important to lay out some facts to the elected members as to why I felt it necessary to initiate judicial review proceedings” Mr. McKeown said this afternoon.
“The basis of our case was that we felt that the planning permission which was issued by Kilkenny County Council to Dunnes was in contravention of their own county Capital Plan.
“The permission granted by Kilkenny County Council was on foot of a 2006 permission that was issued to Dunnes which never commenced, which had expired, which was almost 20 years old, and which was based on an entirely different retail context to what we now face in Waterford city centre.
“So I felt firmly, and believe firmly, that in that context it was important that a Retail Impact Assessment should be undertaken, as per requirements set out in the Kilkenny County Development Plan” Mr. McKeown said.
Retail Impact Assessment reports are used to assess the impact that large proposed developments will have on existing retailers, the local economy, and the community.
Within Kilkenny’s County Development Plan, it is outlined that the submission of a Retail Impact Assessment report is required during the planning stages for any retail development that has a retail floorspace of above 500sqm.
Mr. McKeown said the planning application concerning Ferrybank Shopping Centre encompassed a total retail floorspace of 614sqm, and therefore required a Retail Impact Assessment Report to be submitted.
Mr. McKeown said: “I’m just stating the facts here. The Executive Planner that considered the report for consideration accepted our view and said a Retail Impact Assessment is required. But the more senior officials, including the Senior Planner within Kilkenny County Council overruled that. That happens from time to time, but it is rare. It is important to note that did happen.”
Kilkenny Council granted permission for Dunnes Stores to commence operations in the shopping centre in August 2025.
Waterford Council subsequently appealed this decision to the national planning body, An Coimisiún Pleanála. This appeal was deemed invalid.
Mr. McKeown said: “Our appeal to the Coimisiún was never heard because we did not receive an acknowledgement in the prescribed form from Kilkenny County Council."
It was in these circumstances that Waterford initiated legal proceedings and sought leave to take judicial review.
“We took legal advice on that and carefully considered it. It’s not something we did lightly, but after careful consideration and taking into account the legal advice we got, we initiated the proceedings” Mr. McKeown said.
In November 2025, Waterford were granted leave to take judicial review.
This means that the Council expressed that they had sufficient interest in the matter, and demonstrated that they are affected in some way by the decision of Kilkenny County Council to grant the shopping centre permission to proceed.
“We passed the legal threshold required for this to be a matter of public and legal interest to be tested by Judicial Review, and that is important to note. These were not frivolous proceedings and were not something we did lightly” Mr. McKeown said.
On June 11, the case was heard by High Court judge, Mr. Justice Richard Humphreys.
On this date, the Judge indicated his preference not to issue a judgement. He said if he were to issue a judgement, he was going to rule against Waterford City and County Council.
Waterford therefore decided to withdraw.
On July 6, a formal order was issued by Judge Humphreys indicating that Waterford had officially withdrawn their case and are now responsible for the full legal costs of both opposing parties; Kilkenny County Council and Dunnes Stores.
“We don’t know what the level of those costs are yet, but they will be substantial” Mr. McKeown said.
Finalising his address to the Council this afternoon, Mr. McKeown said:
“We reluctantly initiated these proceedings. Obviously the outcome is not the one that we expected, but we accept the outcome of the court and we will move on.”
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