Solicitor claimed €36k cost for €12k settlement case

A solicitor who negotiated a €12,000 settlement for a client who was defamed by Irish Rail later asked the company for legal costs amounting to more than three times the settlement.

Judge Jacqueline Linnane heard in the Circuit Civil Court that solicitor Fergus Dunleavy had billed Irish Rail for legal costs of just over €36,000, including a professional fee of €25,000.

Sean Coleman of M Roche and Co Solicitors, for Irish Rail, said a claim for defamation of a passenger by one of its ticket collectors had been settled for €12,000 with an agreement that costs would be taxed in default of agreement.

He told the court Mr Dunleavy’s instructions fee of €25,000 had been queried by Irish Rail at a costs taxation hearing before County Registrar Mary Delahunty, who had reduced it to €18,000.

Mr Coleman said his company considered Mr Dunleavy’s reduced fee of €18,000 to be out of proportion to fees awarded in similar cases and was appealing the amount to the Circuit Court.

Sharon Fagan, a legal cost accountant, said it was the €18,000 only that was being appealed. She considered that €6,950 for a professional fee would be appropriate.

Ms Fagan submitted that Ms Delahunty had erred in awarding €18,000 and had failed to carry out a thorough root-and-branch investigation of Mr Dunleavy’s file and papers.

Mr Dunleavy, of Annaville Park, Dundrum, Dublin, told the court he had spent 114 hours on the case. He felt the €18,000 fee should be allowed to stand.

Judge Linnane said Ms Delahunty had erred in her decision and the court found that the €18,000 award was unjust. She reduced the professional fee to €12,500 and awarded costs of yesterday’s hearing to Irish Rail.

The decision reduces Mr Dunleavy’s overall legal costs award to €23,755.