The High Court has ruled that the Department of Marine and Natural Resources acted outside its powers and imposed unreasonable conditions on the owners of a Donegal Marina.
In an action taken by the Department against Figary Watersports Development company Limited, Mr Justice McKechnie said the Department had failed in its duty regarding an application for €2.4m in European funding by the development company that operates a marina at Lough Swilly.
The Department had taken the High Court action against the company for non-payment of rent and had sought orders compelling the company to complete development of the marina under certain terms.
In a counter claim, the company had alleged that it was prevented from drawing down Interreg funding of over €2.4m because of the actions of the Department.
Today Mr Justice McKechnie said the Department was guilty of an actionable breach of statutory duty by refusing to forward a grant application to a steering committee however the judge did not make a finding of negligence, as had been claimed by the company.
The judge also found that rent arrears of €115,000 were owed by the company.
The full judgment will be issued at a later date and outstanding issues such as damages and costs have yet to be determined by the court.