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Supreme Court, on the application of the solicitors for the plaintiff company in successful proceedings against the State: a) grants an order declaring that the solicitors were entitled to a charge upon costs awarded to the plaintiff up to a maximum limit of €1,128,408; b) determines that it was not possible on the evidence to conclude whether a prior mortgage debenture was void as regards the moneys paid in costs under the terms of the relevant legislation, in circumstances where the holder of the debenture was not represented before the court; c) orders that the sum of €500,000 be paid to the solicitors subject to the proviso that they should be liable to account to the plaintiff for the aggregate of the said sum; and d) orders that the holders of the mortgage debenture be notified of the decision within one week.
Laffoy J (nem diss): Application by former solicitor for plaintiff against plaintiff company - award of 1.15 million euro damages in High Court against local authority - orders for costs - appeal to Supreme Court - reduction in damages to 650,000 - costs orders affirmed - costs of appeal awarded to plaintiff against state defendants - compensation and interest paid to plaintiff by defendants - costs of 1.128 million due to solicitors - 500,000 paid by defendants to plaintiffs' solicitors in partial discharge of costs - application by solicitors for charge upon costs awarded to plaintiffs - s. 3 of the Legal Practitioners (Ireland) Act 1876 - whether to remit application to High Court - application for order that funds be paid out to solicitors - application for order directing state defendants to pay balance of costs within reasonable period following conclusion of taxation - prior charge to bank over moneys in plaintiffs' solicitors' client account - bank not represented in application - mortgage debenture - transfer of lender's interest to other financial institution - balance of over €3 million outstanding to bank - undertaking by solicitors to financial institution - provision for deduction of all proper charges - jurisdiction of court on the application - whether words "it shall be lawful for the court" were mandatory or discretionary - provisions of section overlaid with equitable principles - priority - circumstances in which solicitor could obtain priority - whether solicitors prima facie entitled to a declaration under section 3 - whether entitlement was defeated by terms of mortgage debenture - failure of solicitors to send letter in accordance with s.68 of the Solicitors (Amendment) Act, 1994 - whether fatal to application - nature of solicitors' lien - priority - construction of terms of mortgage debenture - whether mortgage debenture void and of no effect by virtue of wording of section 3.
Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.
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