Receiver seeks to lift interim injunction on Michael Flatley's Cork mansion over insurance cover

The court also heard from Mr Flatley’s lawyer, Ronnie Hudson BL, that on Tuesday this week, the star had increased insurance cover for the mansion from €4m to €8m with an added premium of €90,000. Mr Hudson told the court that there was adequate insurance cover on Castleyhyde and he would bring a broker to court to give evidence.

Thirteen days ago a High Court judge granted an interim injunction to Mr Flatley restraining a receiver or his agents from taking steps in relation to the star’s mansion in Fermoy. The order was made as it emerged that the mansion had been put up as security on a €5.6million loan taken out by his London film company in 2023 and a receiver had been appointed over Castlehyde.

A receiver was appointed in a row over the repayment of the loan with the film company and Mr Flatley said that all loan repayments had been made in full by the film company.

Insurance cover

In court on Wednesday, counsel for the receiver Kelley Smith SC said they were looking for the interim injunction to be discharged and the issue was the adequacy of the cover.

She said the Flatley side had sent insurance documents to them and another policy had been taken out the day before, but the issue was the scope of the insurance and the policy on Castelhyde was limited and included such things as fire, lightning and explosion.

Counsel said the policy did not cover all perils and was not an all-risks policy. Ms Smith said there had been “a chequered history of events at the property “and issues in relation to insurance cover.

She said the Flatley side was now saying they had €8m insurance cover but she said it is in respect of a limited range of perils. The joint receivers of Castlehyde wanted all-risks insurance cover and had bought a 30-day policy for Castlehyde which will expire on January 2 next.

She said Castelhyde was on the national monument list and in a rural setting, and because of media attention, it was now well known that it was unoccupied. Ms Smith said it was a very serious matter of concern, and the receiver was willing to say he would not take steps to dispose of Castelhyde if the interim injunction was discharged.

The receiver's counsel said they needed possession of the building and to carry out surveys for the underwriting information. Counsel said the issue must be addressed by January 2.

Counsel for Mr Flatley, Mr Hudson, told the court a gatekeeper lives in a gate lodge and there is also a housekeeper at Castlehyde and the insurance policy had been increased on Tuesday this week.

Mr Justice Mark Sanfey, who adjourned the application to Thursday, said it is a very serious matter if a substantial property does not have adequate and appropriate insurance cover. He appreciated the application had been made quite suddenly but said the matter could not go beyond the end of this week.

The judge said he regarded it as a very serious situation and, if he decided counsel for the receiver is correct and the receiver has to be given access to Castlehyde, then the judge said he would expect the parties to put their heads together in order to secure the property.

The judge said he has to be satisfied that Castlehyde has appropriate insurance.

Novellus Finance Ltd, which provided the €5.6m loan, insists there was default on the loan given to Blackbird Film Productions Ltd for which Mr Flatley provided a guarantee on the strength of the value of his Castlehyde mansion in Fermoy, Co Cork. Mr Flatley and Blackbird deny all the claims.