Judgment: 2014-11-03 · Court archive

High Court dismisses solicitor-discipline appeal over disputed €250,000 payment

The Court upheld the tribunal’s decision that there was no prima facie case for an inquiry into a solicitor’s conduct. It did not decide whether the legal fees were excessive or good value.

High Court · [2014] IEHC 549

Who, what, where, when and why

Who

See the report below for the parties involved.

What

The Court upheld the tribunal’s decision that there was no prima facie case for an inquiry into a solicitor’s conduct. It did not decide whether the legal fees were excessive or good value.

Where

No place detail is included in this summary.

When

Judgment:

Why

Reasons reported in the judgment

In July 2014, the tribunal found no prima facie case of misconduct on the allegations. It concluded that a section 68 costs letter had been sent, bills had been furnished over time, and the client knew fees were due. It also found no obligation to reply to the 2012 letter because the issues had been addressed in earlier correspondence.

The High Court has dismissed an appeal against a disciplinary tribunal’s decision that there was no prima facie case for an inquiry into a solicitor’s conduct in a former client’s separation case.

The appeal concerned a €250,000 bank draft issued in September 2003 after the Supreme Court directed the client’s former husband to pay that sum, with the balance of an earlier High Court award stayed pending an appeal. The draft was made payable to the solicitor’s firm, McCann Fitzgerald.

The client alleged to the Solicitors Disciplinary Tribunal that the firm used the money to pay legal fees without her knowledge or consent. She also said she had not received bills or been told about VAT or her right to have costs taxed. She complained that the solicitor had not answered a letter raising her concerns.

The solicitor disputed those claims. Her evidence was that the client had received bills and cost information, knew fees were outstanding, and had instructed the firm to pay money to her bank from the proceeds. The solicitor also said the client had asked her to discuss arrangements with the client’s brother. The client’s appeal disputed that account and argued that a full oral hearing was needed.

In July 2014, the tribunal found no prima facie case of misconduct on the allegations. It concluded that a section 68 costs letter had been sent, bills had been furnished over time, and the client knew fees were due. It also found no obligation to reply to the 2012 letter because the issues had been addressed in earlier correspondence.

The High Court said the tribunal had given sufficiently clear reasons for its decision. It found the March 2000 letter sufficient for the purposes of section 68 and said there was no obligation on the solicitor to refer to VAT in that letter. On the facts, the failure to advise the client of her right to taxation did not amount to misconduct.

The Court also accepted that the client had given a written instruction for a payment to be made to AIB when the money arrived, and that her brother had given clear instructions on the arrangements. It said the AIB issue had not been raised before the tribunal and that no fresh evidence warranted departing from the tribunal’s decision. The solicitor’s failure to reply to the 2012 letter was attributed to an administrative error, not misconduct.

The Court expressly declined to assess whether the fees represented good value or were excessive. It dismissed the appeal, leaving the tribunal’s no-prima-facie-case decision in place; it did not conduct a plenary hearing or make a finding on the merits of the fees.

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