Council legal bill doubles after row over damages

A county council’s legal bill doubled after an unseemly squabble with a department over the costs of defending a damages action taken by a woman grieving for her husband and daughter.

Both Cork County Council and the Department of Transport were sued by Mary Moriarty following the deaths of Vincent Moriarty, aged 44, and Tracey Moriarty, 11, in a ferry tragedy off Castletownbere in Feb 1994.

Her claim was settled. But a dispute then erupted over €81,806 in legal bills clocked up by the county council. It’s believed the department had promised to pick up the bill.

In 2007 the council initiated a High Court case to enforce this promise and at one point afterwards negotiations broke down.

It was not until a mediation ordered in 2010 that the department agreed to pay the council’s costs. By this stage the interest costs and the council’s bill for preparing its High Court challenge had more than doubled the costs.

The department would not release details of its costs as it said it was a matter for the Chief State Solicitor’s Office. Originally, the council had looked for an additional €111,471 but settled for an offer of €85,694 plus its original legal bill of €81,806.

Despite the legal bills mounting throughout the previous decade due to delays, it took just one negotiation meeting on Mar 12, 2010 for the parties to agree the terms of a settlement.

The final settlement figure was still €24,000 higher than an internal estimate prepared a year before the negotiation meeting.

The Blue Ferry tragedy happened early in the morning of Feb 24, 1994, as people watched helplessly at Castletownbere Harbour.

Four people lost their lives: Vincent Moriarty, his daughter Tracey, Patrick O’Neill and Patrick Maguire.

The department denied liability because it was an unlicensed ferry but it settled Ms Moriarty’s claim for €177,763 plus costs.

Departmental memos show that when the council began its challenge against the department it was offered an opportunity to negotiate a settlement. But, according to the department’s notes, “this offer was rejected”.

The council then threatened to issue a motion for judgement against the State. It was not until Jan 2010 that the secretary general of the department suggested it was an ideal test case to explore the potential for mediation. In a statement, the council said “[it] sought to be left out of the case and sought to have their costs covered by Department of Transport which denied this and proceedings were brought against them”.

The department said costs were the concern of the CSSO. “The CSSO acted for the department in this matter; the matter of cost rests with the CSSO.”

Efforts were made to contact Ms Moriarty but these were unsuccessful.