The High Court found that Gerard Madden had agreed to indemnify Michael Richardson and Wendi Ferris-Richardson for all costs arising from a failed judicial review challenge over a Limerick radio licence, and that he breached that agreement. It also found their former solicitors, Dermot G. O’Donovan and Partners, negligent and in breach of duty and contract. The court did not make a final order on damages; it said it would hear counsel on that issue first.
The two claims were heard together because they shared evidence, but were to be determined separately. In a judgment delivered on 27 May 2005, Quirke J. addressed both actions in one document.
The dispute arose after the plaintiffs joined other unsuccessful applicants in challenging the IRTC’s handling of a Limerick radio licence competition. The court found the challenge was initiated largely for Madden’s benefit, as it delayed the appointment of a new licensee while the existing station continued broadcasting.
Richardson had made clear that he could not contribute to the legal costs. The judge found that, after a meeting at the solicitors’ office on 25 March 1997, Madden assured him he would “pick up the bill”. The court also accepted evidence that Madden later told solicitor Michael Hogan he would cover all costs, including any awarded against the applicants. The judge found Madden’s evidence unreliable and concluded that he had expressly agreed to indemnify both plaintiffs. The court held that his failure to meet that obligation entitled them to damages.
The court separately found that Hogan had failed to advise Wendi Ferris-Richardson about the proceedings and their risks. It found she would not have joined had she been advised. As to Michael Richardson, the court found the solicitor had not adequately explained the risk of liability for the IRTC’s costs, protected him from that exposure, or kept him informed about key developments and adverse costs orders. It also found a letter from Richardson dated 29 April 1997 had been delivered to Hogan, who failed to act on it.
The judgment said both defendants’ civil wrongs had caused loss. It recorded that judgment had been registered against the plaintiffs for €88,902.30, with costs and interest, and that bankruptcy proceedings had been commenced and temporarily suspended. It held they were entitled to joint and several damages sufficient to meet that liability, specified additional costs, and compensation for distress, inconvenience, disruption and reputational harm. The amount of those damages remained to be determined.