THE TRUSTEES OF a prized Tipperary estate decided not to do a deal with businessman John Magnier after the billionaire sent two brown envelopes containing a total of €50,000 in cash to the estate’s chief beneficiaries, the High Court heard today.

Magnier wants the court to enforce a €15m deal he claims he sealed with Richard Thomson-Moore, in a hand-shake agreement, for a 751-acre farm, Barne Estate, in Co Tipperary on 22 August 2023, at his Coolmore home.

Magnier has sued the Barne Estate, Thomson-Moore and three companies of IQEQ (Jersey) Ltd group – the trustees. The Barne defendants say there was never any such agreement, as they needed the consent of the trustees to finalise any deal.

Benjamin Newman, a director of the trustees who hold Barne Estate for Thomson-Moore and his sister, today told Paul Gallagher SC, for Magnier, that the brown envelopes, each containing €25K, raised a “red flag” for the trust.

He said that it was seen by them as a “pure inducement”, and later told the court that the trustees had, up to that point in September 2023, preferred Magnier’s bid over that of construction magnate Maurice Regan.

Regan subsequently won the bid, at a price of €22.5m. He had bid €5m more than Magnier.

Newman today said the Thomson-Moores were frustrated at the trust’s initial position, but that two factors inevitably turned the trustees to favour Regan’s bid, which was almost 50% higher than Magnier’s.

The two brown envelopes, given to estate agent John Stokes and containing a total of €50,000 in cash, were seen as a “pure inducement” and that “significant” concerns were raised relating to “anti-corruption and bribery codes of practice” employed by the trust.

Newman said that the second factor concerned due diligence on Regan’s cash bid. 

The court has heard that while Regan offered €22.5m, Magnier’s bid totalled €16m in cash and a promise to set up a €500,000 cash trust for Richard Thomson-Moore’s daughter after a month-long deal exclusivity agreement had passed.

Meanwhile, Newman explained that the trust viewed Regan’s bid as an effort to establish his “genuine, bona fide” interest in the purchase, and to make sure it was not a “provocative” offer to frustrate any sale to Magnier.

Up until the exclusivity agreement had expired, the trust were “absolutely very happy and keen” to accept Magnier’s offer, Newman added, even though it was a smaller offer.

Once the agreement had expired, however, the purchase of the Barne Estate became “purely commercial”, Newman said, leading to Regan’s deal being selected.

Any proposed deal, he testified, would only be properly accepted once all members of the trust had approved.

Thomson-Moore has told the court that a “price” was agreed with Magnier for the Barne Estate and that the handshake did not represent a deal. 

Magnier’s legal team has told the court that the money was a token of “appreciation” to the Thomson-Moores for letting the businessman and his associates onto the land before any sale was finalised.

Newman said he had since accepted that this was the reason for the money, according to the evidence given by Magnier’s solicitors.

Thomson-Moore has told the court the delivery of the money caused him “shock” and he felt the offer of “envelopes stuffed with cash” was “untoward”. The money was later returned by the Thomson-Moores.

Newman told Martin Hayden SC, for the Thomson-Moore side, that Regan had loaned, with interest, Barne Estate Ltd the cost of defending the court action taken by Magnier and had also put down a “non-refundable” deposit on the purchase of the land.

Newman said the €22.25m figure was a “life-changing one, a big number [...] way over what we had anticipated”.

The case continues before Mr Justice Max Barrett.