Leading businessman Brendan Murtagh and former co-directors at Howard Holdings have been ordered to pay €1m in damages in a property dispute about lands owned in Mallorca.

A London court has ruled that Murtagh, Brian Madden, and Greg Coughlan and a company called Britanica de Promociones en Valldemossa pay the damages to creditors the Cresta Investment Company, Chester Property investment Company and Michael John Fresson.

It is believed the dispute arose after Murtagh, Madden and Coughlan planned to sell a 101 hectare site to Cresta to build a holiday development on the island. After the sale fell through, Cresta claimed that the Irishmen had failed to meet their obligations.

The judge ruled that the four defendants pay €1m in damages. The ruling is still open to an appeal.

Building society EBS last year brought an action against Coughlan, Madden, and Murtagh over a dispute involving Irish loans but a settlement is believed to have been reached.