The Court of Appeal has reduced Philip Morrissey's exposure to legal costs arising from proceedings brought by Everyday Finance DAC to enforce a settlement agreement connected with multimillion-euro AIB lending.
Mr Morrissey had guaranteed lending to Dan Morrissey (IRL) Ltd and in December 2015 consented to judgment in favour of AIB for €24.97 million. Earlier that day, he had granted Malcomson Law Solicitors a charge over land which he had previously agreed to charge to AIB.
AIB began proceedings in 2017 concerning that charge and its own claimed security. The loans and security were transferred to Everyday Finance in 2019. Following mediation, Mr Morrissey, AIB, Everyday, receivers and another company entered a settlement agreement on January 31st, 2020.
Everyday then sought High Court orders implementing the settlement. Malcomson Law opposed the application from the outset. Mr Morrissey initially consented to the orders through his lawyers but changed position in June 2020 and also opposed the application.
The High Court ultimately granted Everyday's application. In June 2024, the President of the High Court decided that Mr Morrissey and Malcomson Law should be jointly and severally liable for Everyday's costs.
Before the final order was made, however, Everyday separately settled with Malcomson Law and abandoned its costs claim against the firm. The final July 2024 order consequently left Mr Morrissey alone responsible for all of Everyday's costs.
Mr Justice Allen held that this change made the final result unjust. The court noted that the first five listings of the enforcement motion were attributable solely to Malcomson Law's opposition and that Mr Morrissey should not have to pay costs caused by issues he had not raised.
The appeal was therefore allowed as against Everyday. Mr Morrissey must still pay the costs attributable to his own unsuccessful opposition, but costs generated exclusively by Malcomson Law are to be excluded.
His appeal against Malcomson Law itself was dismissed. The court also proposed divided costs orders for the appeal because Everyday had earlier offered to vacate the entire High Court costs order.