July 25, 2021
Business News

Wicklow property developer Kavanagh sued by brother

Wicklow property developer Greg Kavanagh has found himself being  sued by an unlikely party – his brother.

The Kavanagh brothers are originally from Arklow and began the development of the La Touche Hotel in Greystones several years ago before selling their New Generation Property business for several hundred million euro.

Bernard (Hugh) Kavanagh was in an “unfortunate” and urgent commercial dispute, the High Court was told, after he was allegedly removed as director of 19 companies.

Relations between the brothers had deteriorated, counsel Rossa Fanning told the court, and while Greg Kavanagh was seen as the “front of house” of the business, Hugh Kavanagh had a hands-on role in terms of building and development activity.

He was not bringing these proceedings lightly and believed he had been left with “no other option”, Mr Kavanagh said.

The break-up of his relationship with his brother has caused “immense personal grief and distress”, he said.

“We started out together in 2004 and from then on had shared everything. There was never a need to formally document our agreement, it was simply entirely natural. He always had my back and I always had his.”

Hugh Kavanagh estimated the net value of Structured Marshalled Investments Ltd (SMIL), the main holding company for the business, was some €35m.

Ms Justice Deirdre Murphy agreed the matter was urgent and the matter is due before the court again on Friday.
Hugh Kavanagh claims he has been removed as a director of 19 of the 20 defendant companies but not of one firm, Bezzu Corporation Ltd.

In court documents, he said he had operated with Greg, his younger brother, for some 17 years and they had worked closely together to build up a very successful business.

Up until about six weeks ago, they had had a very close personal relationship as brothers, each were best man at the other’s wedding and Greg was godfather to two of his three children, Mr Kavanagh said.

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