Solicitor accused of taking client’s sex abuse payout

Denis McMahon, a partner in McMahon O’Brien solicitors with offices in Limerick and Dublin, is facing charges of misconduct for failing to lodge two cheques — the settlement cheque for €25,000 and another for €10,000 related to legal costs — to the account of a client who sued a religious institution over abuse he suffered as a child.
Paul Anthony McDermott BL, for the Law Society, told the court the matter came to light when the client had a conversation with another solicitor in the McMahon law firm.
That solicitor told the client that a third solicitor was going to leave the office that day because he was “very uncomfortable and stuck in the middle”, Mr McDermott said.
This alerted the client, who contacted the religious institution he had sued, and was told the two cheques had already been sent.
He then contacted Mr McMahon, who told him the case was going to be difficult but that he might be able to settle it for a very small ex-gratia payment.
The client had already pledged the settlement to a financial institution with whom he had debts, counsel said.
Mr McMahon wrote a letter to both the client and the financial institution, saying there was going to be a small settlement, but this was a “positive untruth” and he concealed the fact that the money was going to be diverted elsewhere, Mr McDermott said.