Mediation fails in refugee accommodation contracts dispute

High Court Reporter

Mediation has not been successful in a dispute over the shelving by the Government of plans for international protection applicant accommodation in two Dublin office buildings on which a company says it spent €6 million in refurbishment works, the Commercial Court heard.

Property company, Lonadale Ltd, has claimed it entered into agreements with the Government to convert IFAC House, Old Naas Road, and Canal House, South Circular Road, to accommodate 158 residents at a daily rate of €90 per person.

However, last July, following the transfer of accommodation for refugees to the Department of Justice, the plug was pulled on a number of office-to-residential conversions. A number of sets of legal proceedings followed, including those from Lonadale.

It sued the Minister for Children, Disability and Equality and the Minister for Justice, Home Affairs and integration, seeking damages for breach of contract and duty.

It also sought, as against the Minister for Children, Disability and Equality, damages for misrepresentation and damages against the Minister for Justice for unlawful interference with contractual and/or business relations.

Lonadale says it has, in reliance on agreements made with the State in February 2025, begun fitting out the buildings and working towards a Summer commencement date.

But last July, it was told the Minister for Justice intended to breach, or secure a breach of, the refurbishment agreements.

On Monday, Judge Sanfey was told mediation talks which had taken place to try to resolve the dispute were not successful and Lonadale now sought court new directions for the hearing of the case.

The judge adjourned the case to October and asked the parties to bear in mind the possibility of still resolving the dispute, notwithstanding the failure of mediation.