Belfast: Legal action settled in Obel Tower case

Legal action over alleged fire protection defects at Ireland's tallest residential building has been settled, the High Court heard on Wednesday.

Construction firm O'Hare and McGovern faced legal action over concerns about cladding and fire safety at Obel Tower in Belfast.

A confidential resolution had been reached in the lawsuit against the construction firm, the court heard.

The company has already agreed to carry out remedial work to cladding.

Completed in 2011 at a cost of £60m, Obel Tower includes 233 apartments and office accommodation.

It was later repossessed and eventually sold due to the bank debts of the developer, Donegall Quay Ltd.

After a 2017 fire at Grenfell Tower in London, where 72 people died, the government required high-rise buildings to complete external wall safety (EWSS1) surveys.

Issues were identified during those checks at the Obel complex in 2021.

'Overarching resolution'

Proceedings brought against O'Hare & McGovern by original developer Donegall Quay Ltd (now in liquidation), Obel Management Ltd and Obel Ground Ltd alleged that urgent work was required to repair "life threatening" fire protection defects at the building.

At one stage, fears were raised that all apartments would have to be vacated if the work was not carried out before insurance cover was originally due to expire at the end of last year.

Concerns eased in January when the court heard O'Hare and McGovern will fix any defects identified and agreed by both sides' professional experts.

Despite that pledge, damages were sought for the costs of security at Obel Tower and the potential requirement for residents to leave their apartments while work is being carried out.

A statement of claim was lodged to set out the alleged losses. 

But in court on Wednesday, the plaintiffs' barrister announced a confidential settlement has been reached.

"They provide an overarching resolution of the entire action," she said.

With no final figure included in the agreed terms, Mr Justice Humphreys was informed that he may yet have to make a determination if there is any dispute over the sum to be paid out.

Staying the action, the judge also ordered the defendant to pay the plaintiff's costs.

Meanwhile, O'Hare and McGovern is now set to proceed with a separate action against some of the subcontractors and suppliers for the Obel development. 

At the hearing the firm's barrister said: "We will have the third party proceedings brought into court for directions once we have received the defences."