The High Court ruled that solicitor Mary Cowhey was entitled in principle to a common law lien and a statutory charge over money recovered by J. & G. McGowan Roofing Contractors Ltd. from Manley Construction Ltd. The orders were conditional on Cowhey filing a further affidavit to clarify the unpaid costs and the sums covered.
In an earlier order made on 7 March 2011, the court enforced an interim arbitration award and ordered Manley to pay McGowan €136,672.15, together with specified interest and the costs of those court proceedings. The arbitrator’s final award, made on 15 September 2010, also awarded McGowan arbitration costs, reimbursement of arbitration fees and expenses with interest, and measured costs from earlier High Court proceedings. Justice Laffoy said the evidence before her did not clearly show how some of those sums related to the 7 March order.
Cowhey, who had acted for McGowan in earlier court proceedings, the arbitration and the substantive applications, sought a charge for costs McGowan owed her. Neither company appeared at the 4 July 2011 hearing. The judge recorded that Manley did not intend to appear and that McGowan had sent Cowhey an undated letter saying it would not seek taxation of her costs. The judgment said that letter should be exhibited in an affidavit.
The court distinguished McGowan’s party-and-party costs recoverable from Manley from the solicitor-and-client costs McGowan owed Cowhey. Manley remained entitled to have the costs payable under the court order taxed. Cowhey’s charge, if ordered, would secure costs owed by her client; the court noted those costs could be taxed and that Cowhey might waive taxation between herself and McGowan.
Justice Laffoy directed that, once Cowhey filed a supplemental affidavit confirming the costs were unpaid, clarifying how the arbitration awards related to the 7 March order and identifying additional sums in the final award, and exhibiting McGowan’s letter, orders would issue. They would declare the lien and statutory charge over the relevant court and arbitration funds, subject to a maximum of €262,667.39; direct Manley to pay the covered funds to Cowhey; give Cowhey and McGowan liberty to apply about taxation; and award Cowhey the costs of this application, to be taxed if not agreed.
The court did not then grant Cowhey liberty to enforce or execute against Manley. It left that relief for a later application, saying it would first need details of the proposed enforcement. Justice Laffoy also observed that it would have been more efficient for the application to have been made to the judge already dealing with the substantive proceedings.