The company which barred Michael Flatley from any involvement in The Lord of the Dance tour is “nothing more than a management agent” and should only be entitled to an agent’s fee, the High Court in Belfast has heard.
On Tuesday, a barrister for the retired choreographer said newly released documents filed by the company staging the shows, Switzer Consulting, show it had “sought to hide” behind an agreement “which doesn’t actually give it any rights”.
“It has sought to restate accounts over the weekend to try and render it solvent. It has no employees, it has no assets, it has no money,” David Dunlop said.
“What it is seeking to do is exercise some control.”
Earlier this month, Switzer was granted a temporary injunction barring Mr Flatley from participating in any upcoming productions.
It is suing the 67-year-old for alleged breach of contract.
Two years ago, both parties struck a formal service agreement which allowed Switzer to run Lord of the Dance.
A tour of 30th anniversary shows is to open in Dublin next week and Mr Flatley’s legal team had previously argued it is in “grave danger” of collapsing in the absence of his artistic direction.
Mr Flatley attended the latest hearing, where it emerged he holds a beneficial shareholding in the company.
Michael Flatley leaving the Royal Courts of Justice in Belfast on Tuesday after the latest hearing in the case taken by Switzer Consulting, which is suing the choreographer and former dancer for alleged breach of contract relating to an agreement the firm says was reached to allow it to run the Lord of the Dance shows he created. Photo: Claudia Savage/PA Wire
The information was provided in a deed of trust document released last week, which his barrister said contained an “astonishing provision” that the key detail regarding his shareholding was to remain confidential.
Mr Dunlop acknowledged that Switzer was entitled to be paid a monthly fee, but argued it should not “demand and dictate what happens in relation to Lord of the Dance”.
“Switzer says that it requires an injunction to stop Mr Flatley exercising any control in circumstances where it is nothing more than a management agent entitled to a fee,” he said.
An undertaking had been made to the company that the £35,000 (€40,300) monthly fee will be “paid and held” pending the outcome of the legal case, the court heard.
“Ironically, what that means is that Switzer can be paid for doing nothing for the duration of the time until this matter can be properly dealt with by the court,” Mr Dunlop added.
The court was told that fresh accounts were filed to Companies House by Switzer on Saturday, which showed that the company had net assets of £2.1 million.
Previous accounts show that it had “zero” employees in 2023/24 and no money, Mr Dunlop claimed.
Barrister Gary McHugh, acting for Switzer, asked for an adjournment in the case following the submission of a second affidavit by Mr Flatley the previous afternoon.
There were issues that “traverse a number of jurisdictions”, he said.
The second affidavit had “come as a surprise” to Switzer’s legal team, the court heard.
Emails and bank statements may be produced in reply to Mr Flatley’s new statement, according to Mr McHugh.
“It will be a substantive reply. It raises new issues… they will speak to the creditability and reliability of certain assertions of Mr Flatley as to how he has managed his finances,” he added.
The judge in the case, Mr Justice Simpson, acknowledged there was an urgency to resolve the matter ahead of the opening of the Lord of the Dance show in the 3Arena on February 5th.
“Whatever happens, a decision is going to have to made this week, if even it’s ex tempore [oral judgment], rather than a written judgment,” he said.
The hearing will resume on Wednesday.