Michael Flatley Disputes Costs in Cork Mansion Legal Case

Michael Flatley, renowned for his role in ‘Lord of the Dance’, is currently engaged in a legal dispute regarding a €1.4 million bill for costs related to his efforts to prevent a receiver from taking over his Cork mansion, Castlehyde.

Flatley expressed his surprise at what he described as “blatant overcharging” in an affidavit submitted to the Commercial Court. This includes a receiver’s costs bill of €86,000 and legal fees amounting to €186,000. He suggested that he might be perceived “as an easy mark for inflated costs”.

The case also involves €793,000 in legal fees from the opposition in the Castlehyde dispute. Flatley highlighted a charge for 13 hours allegedly spent by joint receivers attending the High Court at a combined rate of €1,000 per hour.

While Flatley does not oppose paying fees in principle, he insists that exorbitant, largely unvouched fees lacking transparency must be justified. He argues that the vouching of documents is essential for justice.

Legal Proceedings

In court, Flatley’s team sought documentation from the opposing party, including the receiver’s report, records of tasks performed, and a detailed breakdown of invoices and timesheets from third-party providers. This information is crucial for their case concerning the disputed €1.4 million costs.

Flatley’s barrister, Ronnie Hudson BL, supported by solicitor Maxwell Mooney, stated that Flatley’s primary concern is transparency in costs.

Background of the Case

Kelley Smith SC, representing Novellus and the receivers, indicated that previous allegations by Flatley’s side had been withdrawn. She questioned the motives behind the current application, describing it as “grandstanding”.

In March, Flatley settled a €6.9 million loan on Castlehyde to avoid a takeover by receivers. This loan was originally provided to Flatley’s Blackbird Film Productions Ltd by Novellus Finance Ltd, requiring monthly repayments of €67,000 over two years.

Novellus accused Flatley of defaulting on loan repayments, a claim he denied, leading to the appointment of a receiver over his property. An interim injunction temporarily halted the receiver’s actions, and a subsequent court hearing was held.

The Flatley side requested the court to delay its decision on whether to continue the injunction preventing receiver actions. Flatley was reportedly flying to Dublin to settle the loan, which was eventually paid, though cost disputes remain.

Mr Justice Mark Sanfey has reserved his decision for a future date.