JP Magnier handed €50,000 in 'brown' envelopes to estate agent in land sale, court hears

High Court reporters

The High Court has heard that billionaire bloodstock magnate John Magnier's son, JP, handed over two "brown" envelopes containing a total of €50,000 in cash to an estate agent involved in a failed €15 million property deal which were delivered to the beneficiaries of the estate as a show of "appreciation".

The court also heard that a solicitor involved in the proposed conveyance of Barne Estate, Co Tipperary, the subject of a legal action by John Magnier - who alleges a €15 million deal was reneged upon by the vendors - has told the High Court that an agreement was in place between the parties before an exclusivity document was signed.

Joseph Fitzpatrick, of Smithwick Solicitors, was giving evidence in the hearing on Thursday and told counsel for the Barne Estate that he secured an exclusivity agreement signed by both sides to run from August 31st to September 22nd after hands were allegedly shaken on the deal.

Lawyers acting for Mr Magnier, founder of the world-famous Coolmore Stud, have claimed before the High Court that a US-based construction magnate, Maurice Regan, the preferred buyer, engaged in a "full-frontal assault" on Mr Magnier's claimed deal to buy the 751-acre tract.

Mr Magnier's proceedings claim that Barne Estate reneged on the alleged deal, preferring to sell the land at the higher price of €22.25 million to Mr Regan, the founder of the New York building firm JT Magen.

Mr Magnier – along with his adult children - wants to enforce the alleged deal.

The Magnier side says the deal was struck at an August 22, 2023, kitchen meeting at Mr Magnier’s Coolmore home. They also claim an exclusivity agreement that was in effect from August 31 to September 30 stipulated that the estate would not permit its representatives to solicit or encourage any expression of interest, inquiry or offer on the property from anyone other than Mr Magnier.

Barne Estate has been held for the benefit of Richard Thomson-Moore and others by a Jersey trust.

The Magnier side has sued the Barne Estate, Mr Thomson-Moore and three companies of IQEQ (Jersey) Ltd group, seeking to enforce the purported deal, which they say had been "unequivocally" agreed.

The Barne defendants say there was never any such agreement, as they needed the consent of the trustees to finalise any agreement, and subsequently they preferred to sell the estate to Mr Regan.

Mr Regan is not a party to the case.

Mr Magnier's son, JP, told Paul Gallagher SC, for the Magnier side, that his father asked him to get €50,000 in cash on September 8, 2023, and to put it into two envelopes to be given to the Thomson-Moores.

He said the money was an "appreciation" for letting the Magnier side onto the Barne land, for their loyalty in honouring the deal and because they were allegedly "cash strapped".

JP Magnier said he put the money into two envelopes and gave it to the estate agent at Barne Estate for them to be passed on to the Thomson-Moores.

On September 11, 2023, however, he said the estate agent met with JP Magnier and "pushed" the envelopes in his direction, saying that the Thomson-Moores were concerned that their farm manager may have seen the original transaction.

Niall F Buckley SC, for the Barne side, asked what colour the envelopes were and was told by JP Magnier that they were brown.

Mr Buckley put it to JP Magnier that the envelopes were to keep the Thomson-Moores "sweet", as John Magnier was concerned they were going to pull out of the deal. JP Magnier said his father never said that to him.

"I take it you didn't ask for a receipt?" asked Mr Buckley. JP Magnier replied: "No."

"Doesn't that say it all," remarked Mr Buckley.

"Knowing what you did about my clients' family circumstances and the need for them to provide for their child and given the vast amount of land you have, did it ever occur to you to let this one go?"

"It wouldn't be my call," said JP Magnier.

Mr Fitzpatrick told Martin Hayden SC, for the Barne Estate, that the exclusivity agreement was not to further any negotiation but to keep the "status quo" of the alleged sale agreement in order to further the preparation and receipt of the contracts.

"Exclusivity was not for negotiations going forward but to facilitate the contract," said Mr Fitzpatrick.

Mr Fitzpatrick said Mr Magnier had deposited €15 million in the Smithwicks' client account before any purported contract was signed in order to "show good faith".

However, a week before the exclusivity agreement expired, the Thomson-Moores said they were taking tax advice, he said.

"We invited them to a meeting and that was refused, then the extension of the exclusivity was refused. It was clear they had no intention of signing with us and were running down the clock," said Mr Fitzpatrick.

The case continues in two weeks' time before Mr Justice Max Barrett.