High Court, in dispute over defendants’ failure to pay fees relating to work done on a “no foal, no fee” basis in connection with litigation brought by the defendants arising from contamination of their home by oil pollution from a neighbouring filling station, which settled for €500,000, finds that the defendants were liable under a 1997 agreement to pay the plaintiff for the work done pursuant to that agreement following the settlement, and awards the plaintiffs €100,000, being a sum of €57,379 plus VAT at 21% of €12,050 and interest in the sum of €30,571.
Contract law - Claim for some €80,000 (plus interest) for fees relating to work done on a “no foal, no fee” basis in connection with litigation brought by the defendants arising from contamination of their home by oil pollution from a neighbouring filling station - large amount of investigative work on the cause of the contamination – defendants obtained settlement of €500,000 - enabled them buy a new home and still be left with some €250,000 – 15 years ago - no foal, no fee basis of the agreement in relation to the plaintiff’s fees was embodied in a written contract entered into between the plaintiff and the defendants some time in 1997 and the work done by the plaintiff, which was critical to the settlement, was done in the period 1995 to 2007 - conceded on behalf of the defendants at the trial before me that the work in question was done – not one cent paid to the plaintiffs - quantum of the amounts claimed – alleged that the plaintiffs were not party to the original agreement - proper parties to the 1997 agreement - contra proferentem rule - plaintiff was a party the 1997 agreement – contract breached by a failure to pay the plaintiff’s fees following settlement of the oil contamination litigation – Defendants were liable under the 1997 agreement to pay the plaintiff for the work done by the plaintiff pursuant to that agreement following the settlement – statute of limitations - limitation period of six years in respect of a claim for breach of contract commenced on the completion of the cause of action on 21 April 2018 (when the oil contamination litigation was settled) and these proceedings, which were issued on 11 April 2014, were accordingly brought within the applicable six year limitation period – quantum – assessment of damages - plaintiff was entitled to a sum of €57,379 plus VAT at 21% of €12,050, giving a total of €69,429 – interest claim - some level of interest would be appropriate given the length of time the plaintiff has had to wait to secure payment – delay in issuing proceedings - appropriate to grant some interest under the Late Payment Regulations - award of interest for a sum of €30,571 under the Late Payment Regulation - total award in favour of the plaintiff is a sum of €100,000.