SALE OF PREMISES 3-5 LITTLE KING STREET
It appears that this property was placed on the market for sale prior to November 1973 and at a time before it sustained damage from a bomb blast in respect of which a criminal injury claim was made.
Negotiations to sell the property to Mr Thomas Bernard Dobbin (for whom Mr John Morris acted as solicitor) for the sum of £7,500 were concluded in November 1973 and the conveyance to Mr Dobbin was executed on 2 April 1974. Messrs Desmond McConnell, Martin & Co submitted a comprehensive appraisal and report on the property to Messrs Tughan & Co on 29 November 1973. An account was prepared by Messrs Tughan & Co showing their own costs and outlays together with other expenses borne by the Patient in relation to the transaction. Although the bill of costs prepared by Messrs Tughan & Co is dated 23 April 1974 (by which time, it might be supposed, the work involved in the sale would have been virtually complete) the net proceeds of sale (together with monies arising from the criminal injury claim referred to below) do not appear in the Patient's general account with Messrs Tughan & Co in their clients' ledger until 29 March 1977.
16. Please set out below a summary of your replies to the general questions Nos 1, 3, 4, 5, 7, 9, 12 and 13 in relation to this transaction.
SALE OF PREMISES 3-5 LITTLE KING STREET (continued)
17. You have delivered an account in respect of this transaction to Messrs Cleaver, Fulton & Rankin which is undated. When was it prepared?
18. Was that account ever furnished to the Patient or to Mrs Minetta Andrews and, if so, when?
19. The account while setting out all relevant receipts and payments, supported by vouchers, does not show any dates for those entries.
Please furnish a complete account with dates.
20. The account shows the receipt from the Northen Ireland Office of £6,100.11 (of which, I understand, £5,981.00 represented compensation due to the Patient). When was the original claim made and when was the payable order received in settlement of it?
OFFER FOR PURCHASE OF SMITHFIELD PROPERTY - 1974
During the years immediately following the death of Frederick Andrews, senior, on 14 July 1972 consideration was given by the directors of Andrews and Company (Belfast) Limited to the possible purchase from the Patient of properties at 62-65 Smithfield Square, 66-69 Smithfield Square and 1-11 Francis Street. Your firm prepared 2 Contracts for sale in respect of these premises which, I understand, were sent to Messrs James Boston & Sullivan (as solicitors for the Company) on 8 August 1974. The 2 contracts duly signed by Mr William John Andrews, then a director of the Company, offering to purchase the properties for sums of £25,000 and £10,000 respectively were returned to you by Messrs James Boston & Sullivan on 15 August 1974 together with a cheque for £5,000 by way of deposit. It is noted that this sum was placed by you on deposit with the Investment Bank of Ireland Limited where it remained until 29 August 1975 when it was returned, with the accumulated interest, to the company's solicitors with a covering letter stating that you understood that the sale was not then proceeding. During the year prior to the return of the deposit Messrs James Boston & Sullivan had written to you enquiring about their client's offer to purchase the property in letters dated 1 November 1974, 20 December 1974, 21 January 1975 and 28 February 1975 to which they received no replies.
21. Please set out below a summary of your replies to the general questions Nos 1, 2, 3, 4 and 12 in relation to this abortive transaction.
OFFER FOR PURCHASE OF SMITHFIELD PROPERTY - 1974 (continued)
22. Messrs Desmond McConnell, Martin & Co wrote a letter to the Company dated 23 July 1974, I understand, indicating that (the Patient) would accept £35,000 for the Smithfield property. Upon whose instructions were Messrs McConnell, Martin & Co acting at the time of writing that letter?
23. Upon receiving from the Company's solicitors the offers to purchase in August 1974 and upon lodging the sum of £5,000 on deposit with the Investment Bank of Ireland Limited what other action was taken by you?
24. Why were the offers not accepted?
25. Why were no replies given to the 4 letters of enquiry received from the Company's solicitors during the next 6 months?
26. How and by whom was the decision made that the sales "(would) not now proceed" as stated in your letter of 29 August 1975 to Messrs James Boston & Sullivan?
27. What happened to the original contracts bearing the signature of Mr William John Andrews upon the offers made by his Company? Are they still in your possession? If not to whom were they given and why?
28. After August 1975 did the properties remain on the books of Messrs Desmond McConnell, Martin & Co for sale?
29. During the period of the year when the Company's offers to purchase the Smithfield properties for a sum of £35,000 were in your possession (and from the time when you first assumed responsibility for the Patient's affairs) you would have been aware of the fact that Andrews and Company (Belfast) Limited paid an annual rent of £1,500 to the Patient for its occupation of the car showroom. When the sales fell through was any consideration given to the possibility of reviewing that rent bearing in mind (albeit retrospectively) that Messrs Brian Morton & Co expressed the opinion, in their valuation dated 25 August 1977, that the rack rental value of the premises was then £6,500 per annum? What advice was given to the Patient?
30. Was consideration given to the possibility of establishing a formal tenancy of the other property at Smithfield comprising a vacant parking lot used by the Company at a separate market rent?
SALE OF DWELLINGHOUSE 14 CASTLEHILL ROAD
On 3 December 1975 the Patient contracted to sell his dwellinghouse which had been the family home at 14 Castlehill Road to Mr Gerald Patrick Jemphrey for the sum of £38,750. The sale was completed and an assignment executed by the Patient on 31 March 1976. A valuation of the property prepared by Messrs Desmond McConnell, Martin & Co dated 1 August 1875 had suggested that the property was then worth £37,500.
Messrs James Boston & Sullivan acting on behalf of Mr William John Andrews and Mrs Vera Douglas, obtained a valuation from Messrs Macrory & Jefferson of 44 Donegall Street, Belfast dated 3 November 1983 which states that, in their opinion, the property had a value in February 1976 of £50,500. Two accounts in respect of this sale and the related purchase of 4 Norwood Gardens were prepared by Messrs Tughan & Co showing their costs and outlays, other expenses borne by the Patient and the provision of a bridging loan from the Ulster Bank Limited to enable the purchase of 4 Norwood Gardens to be completed before the completion of the sale of 14 Castlehill Road. Although the sale was completed in April 1976 the net proceeds of sale amounting to £8,956,65 do not appear in the Patient's general account with Messrs Tughan & Co in their clients' ledger until 4 April 1977.
31. Please set out below a summary of your replies to the general questions Nos 1, 2, 4, 5, 7, 9, 12 and 13 in relation to these sale and purchase transactions.
SALE OF DWELLINGHOUSE 14 CASTLEHILL ROAD (continued)
32. You have delivered an account in respect of the sale transaction to Messrs Cleaver, Fulton & Rankin which is undated. When was it prepared?
33. Was that account ever furnished to the Patient or to Mrs Minetta Andrews and, if so when?
34. You have delivered an account in respect of the purchase transaction to Messrs Cleaver, Fulton & Rankin which is undated. When was it prepared?
35. Was that (purchase) account ever furnished to the Patient or to Mrs Minetta Andrews and, if so, when?
36. Neither account shows any dates for the receipts and payments recorded. Please furnish complete accounts with dates.
37. Although the sale transaction was not completed until 31 March 1976 the copy bill of costs furnished to Messrs Clever, Fulton & Rankin bears the date, in manuscript, "25.2.76". Is this date shown in error or were costs charged to the Patient and deducted from his account before completion?
38. Upon completion of the sale in March 1976 a substantial net balance was due to the Patient. Where was that money held until the sum of £8,956.65 was credited to the Patient's general account on 4 April 1977? If it was invested, what interest accrued during that period?
39. The receipt of the sum of £8,956.65 is the last entry shown in the general account to credit of the Patient. Various debit items were charged against his account after April 1976 up to 23 October 1978 when a balance of £4,785.87 still stood to his credit. Was this sum invested on behalf of the Patient or did it form part of a general deposit fund of monies standing to credit in the clients' account of your firm during the period until you paid £2,544.86 (on account) to Mr Drennan as Committee on 29 October 1981. Was the final balance of £2,241.01 invested on behalf of the Patient or did it form part of any deposit fund from that date until it was paid over to Mr Peter J Rankin on 7 November 1983?
40. What comment have you to make in regard to valuation of the dwellinghouse at 14 Castlehill road as at February 1976 which has been prepared by Messrs Macrory & Jefferson?
SALE OF THE SMITHFIELD PROPERTY
For a period up to the summer of 1977 the directors of Andrews and Company (Belfast) had been considering a possible sale of the Company. At that time, I understand, the 2 properties mentioned above, comprising the car showroom and the adjoining parking lot which had been the subject of the abortive negotiations in 1974-75, were still owned by the Patient and the showroom was still producing a rental income for him. Early in August 1977 Mr William John Andrews, the managing director of the Company, consulted his (and the Company's) solicitors, Messrs James Boston & Sullivan, in regard to the terms of a draft Agreement for the purchase of the entire shareholding in the Company, by Neville Johnston (Garages) Limited of 39-49 Adelaide Street, Belfast 2 which had been prepared by Messrs Tughan & Co. Although Messrs James Boston & Sullivan gave Mr W J Andrews certain advice in regard to the terms set out in the draft Agreement they did not act for him or other shareholders/directors in connection with the formal completion of the sale of the Company nor did they correspond at any stage with Messrs Tughan & Co in regard to the transaction. In the event, I understand, the Agreement was signed by Mr W J Andrews, Dr. William John Andrews Junior (his son) and Mrs Patricia Annie Andrews (his wife), all in the presence of Mr H Wright (an assistant solicitor then employed by Messrs Tughan & Co) on 30 September 1977 and the sale of the entire shareholding of the Andrews family in the Company for the sum of £192,000 was completed on or about that date. One of the provisions of the Agreement was a warranty by the 3 members of the Andrews family (named above) as vendors that the freehold and leasehold properties described in the Fourth Schedule to the Agreement comprised all the land and buildings owned or occupied by the Company and that the Company had a good and marketable title to those properties. The Fourth Schedule referred first to premises owned by the Company described on a map annexed and second to 2 Agreements dated "the xxxx day of August 1977 between Frederick Andrews Junior (the Patient) and Andrews and Company (Belfast) Limited (whereby) the Company has agreed to purchase the premises therein."
I am informed by Messrs James Boston & Sullivan that they did not act for the Company in or prior to August 1977 in connection with the 2 Agreements referred to above nor are they aware of any such purchases of the Patient's Smithfield properties having been negotiated by the Company at that time. I am also informed that Mr W J Andrews denies (notwithstanding his signature on the Agreement dated 30 September 1977) that any earlier agreements to purchase the Patient's properties had been concluded by the Company.
41. Please set out below a summary of your replies to the general questions Nos 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12 and 13 in respect of the sales effected by the 2 Agreements made in August 1977 referred to above.
SALE OF THE SMITHFIELD PROPERTY (continued)
50. You have received for reference copies of a valuation dated 3 November 1983 prepared by Messrs Macrory & Jefferson on behalf of Mr W J Andrews which states that the value of the showroom and offices together with the large yard at the rear would have been £152,500 in 1977. An estimate dated 1 November 1983 received by Mr W J Andrews from Messrs John A Tynan & Co, the quantity surveyors engaged upon the original construction of the showrooms and offices in 1962-63 states that those premises would have cost £75,000 to build in 1977. Have you any comment to make about the figure set out in the valuation and the estimate?
Tynan & Co valued this property at £200,000. I have a letter to this effect.
51. Why were the proceeds of sale of the Patient's Smithfield property not shown as having passed through his general account with your firm?
52. Was the sum of £35,000 paid for the Patient's Smithfield property a figure in addition to the sum of £192,000 paid for the purchase of the shareholding in the Company or was the Patient paid out of the latter figure?
53. If the Patient was paid out of the total purchase price for the shares in the Company, as the terms of the Agreement dated 30 September 1977 would suggest, did he receive a separate cheque from the purchaser or did he receive payment from the former shareholders (the vendors)?
54. A sum of £35,000 was invested at about this time in the Northern Ireland Industrial Bank Limited of 26 Central Avenue, Bangor in the names of "Mr Charles Gilpin and Mr Bertie Wright, acting Trustees for Mr Fred Andrews". Who authorised the establishment of this account?
55. Why were the proceeds of this sale treated differently from the earlier sales which had already been completed on behalf of the Patient?
56. Who suggested or approved Mr Gilpin's participation in the management of the trust fund?
57. Upon what basis was the trust fund controlled, who decided what was to be paid out and to whom was it paid out?
58. Was the title of the trust account with the Northern Ireland Industrial Bank Limited changed subsequently? If so, when and in whose name(s) did it then stand?
59. Was any report made to the Court or to the Official Solicitor after October 1977 by your firm, by Mr Wright or by Mr Gilpin in regard to the establishment of the trust fund, the Patient's fitness to manage his own affairs or difficulties which had arisen or were anticipated with the control of his capital or income?
SALE OF 5-21 WINETAVERN STREET
After an unsuccessful attempt in 1976 to sell this property which was yielding a rental income of £556.52 per annum an offer to purchase it for the sum of £17,000 was made by Mr Joseph Kavanagh (later that year?) with a completion date shown at 7 January 1977. Neither the purchaser's offer (with the signature of 2 witnesses) nor the Patient's acceptance (witnessed by Mr Wright) is dated. The sale appears to have been completed at some time in mid-February 1978 but no statement of account has been furnished and Messrs Tughan & Co's bill of costs is dated 19 January 1976.
60. Please set out below a summary of your replies to the general questions Nos 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12 and 13 in relation to this sale.