Warring partners in Kildare legal practice take dispute to High Court
Ray Managh
A disagreeable break-up between warring partners in a Co Kildare legal practice has led to the High Court being brought in to restrain a disputed dissolution of the firm next week.
Barrister Arthur Cunningham told Mr Justice Mark Heslin that the dissolution of the successful legal practice of Burns Nowlan Solicitors in Newbridge could not be agreed between partners Matthew Byrne and Stephen McGrath.
He told the High Court that Mr Byrne, of Mount Eagle, Dublin Road, Naas, was managing partner with a claimed 75 per cent of the equity in the practice while fellow partner Mr McGrath, of The Avenue, Riverside Manor, Kilcullen, owned the remaining 25 per cent.
Mr Cunningham, who appeared with BC Law Solicitors for Byrne, said one of the disputes between the two was the manner in which the equity might be distributed as their non-equity-owning legal partner Jennifer O’Sullivan had confirmed she and McGrath intended breaking out on their own to set up a new joint practice.
Byrne, in written evidence, said he and former secondary school pal McGrath had known each other for decades socially and professionally while working with former owner of the practice, Gerry Burns, who with his wife, Breda, remained landlords of the practice and intended entering into a new lease with McGrath and O’Sullivan.
Mr Byrne said this was a significant issue as the address of their George’s Street, Newbridge, office was a matter of significant importance to the Burns Nowlan practice and he had been advised by their insurance broker that they could not secure cover without a premises.
He said he had not agreed to a new lease being granted by the joint landlords to McGrath and O’Sullivan and Mr McGrath had continually refused to agree to an arbitration. Last month Mr McGrath had given notice of an intention to dissolve from nest Tuesday the Burns Nowlan partnership.
Byrne said solicitor and landlord Gerry Burns had received significant payments to exit the Burns Nowlan practice, totalling €800,000 together with a consultancy agreement, and everyone until recently had been on good terms.
Mr Byrne said the partnership agreement provided for any disputes or differences to be referred to arbitration for final and binding decisions. He believed arbitration should occur prior to dissolution but Mr McGrath would not agree to arbitration until the practice was dissolved.
Mr Justice Heslin said it seemed to him there was arguably a dispute falling within the terms of the arbitration agreement and granted Byrne an interim injunction restraining McGrath from taking any steps for the purposes of dissolving the partnership of Burns Nowlan on April 30th. He noted an undertaking as regards damages by Mr Byrne.
The matter was returned for hearing to May 12th with liberty to both parties to apply to the court. Judge Heslin said, while it would make sense for the parties to exchange affidavits before that date, he would not direct any exchange of documents.
