State firm’s ‘no’ to legal bill
The Shannon Foynes Port Company is claiming the bill is up to twice as much as an estimate, given by another law firm.
The €1.05 million bill is for defending actions in the High Court by former chief executive Brian Byrne and former non-executive board member Morgan Leahy against Shannon Foynes Port Company (SFPC).
Port sources said yesterday that by the end of February, Holmes O’Malley Sexton indicated to the SFPC the firm was due a further €300,000 in addition to €200,000 received after court proceedings commenced. However, when the final bill came in recently, the law firm reportedly sought €1.05 million. A further €120,000 related to a cost accountant’s fee for validating the bill.
A source close to the port company said SFPC would breach EU laws if they cleared the €120,000 bill as tenders have to be sought for any proposal above €70,000 for a public company. “The port company is incensed at what has happened and is reconsidering its relationship with Holmes O’Malley Sexton,” a source said.
Harry Fehily, a partner with Holmes O’Malley Sexton, said he was not aware of any decision not to pay the bill.
Ex-chief executive Mr Byrne had been suspended on full pay in October 2006 after a dispute with a port user.
After 14 months of preliminary hearings, a High Court hearing was averted last October when the company agreed to settle. Mr Byrne reportedly received in the region of €500,000 and Mr Leahy asked that a sum of €50,000 be donated to Milford Hospice.
At a meeting last week in Limerick, the full board reportedly backed a recommendation by its accounts’ subcommittee not to pay the €1.1 million.
As part of the settlement they also face a bill, expected to be less than €1 million, from the Dublin law firm who represented Mr Byrne and Mr Leahy.
A source suggested the total cost would be in the region of €2.7 million.
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