MOUNTARMSTRONG Stud in Cashel, the farm associated with the ‘Alexander’ racehorses, is at the centre of a legal action being taken by Noel O’Callaghan against two of his sons.

O’Callaghan (74) has lodged proceedings in the Commercial Court alleging that his sons Paul and Charles, who took over the running of his hotels, property and stud farm business in 2016, have excluded him and prevented him from exercising his right to retake control.

Noel O’Callaghan built up a chain of five hotels, 100 apartments and the 450-acre Mountarmstrong Stud before retiring almost 10 years ago.

In his proceedings, he claims he stepped down from the day-to-day management of the group to focus on Mountarmstrong and his bloodstock business, leaving the day-to-day running to his sons.

The transfer was done ahead of his 66th birthday in order that substantial capital gains tax relief would not be lost.

It is claimed that, in agreeing the transfer of his shares to his sons, he wanted a “fallback position in the event of any future dispute” whereby he could retake control of the company.

An agreement was signed by sons Paul and Charles, along with a third son Bryan who was involved in the business until he departed in 2023. After Bryan left in 2023, a new shareholders’ agreement was made but, it is claimed, this did not replace the 2016 agreement.

The stud farm, which comprises a large number of racehorses, was operated by a subsidiary company, and Noel O’Callaghan is the full or partial beneficial owner of the bloodstock, it is claimed.

It is alleged that, since 2024, Paul and Charles have attempted to exercise control over the bloodstock with instructions for valuations and sales of some animals done without their father’s consent.

Noel O’Callaghan’s relationship with Paul and Charles began to deteriorate in 2024. He claims his sons began to “freeze” him out by removing clerical support and the cancellation of payments to him, including health insurance.

On Monday, the case was admitted on consent to the Commercial Court on the application of Martin Hayden SC who said, in reply to a question from Mr Justice Mark Sanfey, that mediation had been tried already.

The judge said in cases involving close family members mediation was desirable. He approved agreed directions for the progress of the case and adjourned it to November.

Mountarmstrong has three yearlings entered in the Goffs Orby Sale.