Brothers settle action against friend over €1.25m inheritance investments

Two brothers who sued a friend over an alleged failure to account for, or return, an inheritance of €1.25 million which they gave him to invest in various projects have settled their High Court actions.

Businessmen Gary and David McGuinness brought proceedings against US-based David Morrisroe who, they claimed, has failed to return to them or answer their questions about funds given to him in 2015 and 2016 to be invested in Irish and European property and precious gems. They had claimed that no such investments were ever made by the defendant and that Mr Morrisroe has misappropriated money from them.

Last October, the brothers, represented by Stephen Byrne BL, secured a number of temporary High Court injunctions, including a worldwide freezing order restraining Mr Morrisroe dissipating or dealing with their assets so as to reduce their value below a value of €1.25 million. They sought the orders over fears the defendant intended to dissipate assets and put them beyond the brothers’ reach.

The brothers had also sought orders directing the defendant to repay monies allegedly owed to them. The allegations of wrongdoing were denied. The matter returned before the court on several occasions and was adjourned to allow talks between the sides, with the restraints remaining in place.

When the matter was mentioned before Ms Justice Leonie Reynolds on Friday, she was told the matters had been resolved following out of court discussions between the parties’ representatives.

Mr Byrne said the proceedings could be struck out, with no order as to who should pay the legal costs of the action. The matter could be re-entered before the court with a view to enforcing the terms of the settlement, counsel added.

Solicitor Gerald Kean, for Mr Morrisroe, said the orders could be made on consent. While the settlement agreement is confidential, the court previously heard, as part of the arrangement, the brothers are to receive a substantial payment from the defendant.

In October, the court was told the brothers considered the defendant to be a close friend, whom they had known for many years. The brothers claimed they sought advice from Mr Morrisroe, who, they claimed, had held himself out to be an investment trader operating a large foreign exchange fund, on how to make returns on money they had inherited.

They claim Mr Morrisroe convinced them to invest in projects in which he was involved, including lands in Co Meath and property in Dublin and Croatia, and to invest in diamonds. They claimed Mr Morrisroe failed to engage with them when asked for updates on their investments, that any information that he provided to them was untrue and that he failed to deliver on promises to repay money.