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You are here: BAILII >> Databases >> Supreme Court of Ireland Decisions >> Bloomer v. Incorporated Law Society of Ireland [2001] IESC 70 (30 July 2001) URL: http://www.bailii.org/ie/cases/IESC/2001/70.html Cite as: [2002] 1 IR 189, [2001] IESC 70 |
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1. This
appeal arises from the taxation of costs in the above entitled action which was
initiated in the High Court and subsequently went on appeal to this Court.
Following the Order for Costs made in this Court, to which I will refer later,
all the costs went to taxation. The taxation was carried out by Taxing Master
Moran. Somewhat unusually, the Taxing Master, in addition to the customary
submissions by the Legal Costs Accountants on each side, was presented with
oral evidence given on behalf of the plaintiffs both by Senior Counsel who
appeared for the plaintiffs, Dr. White, and by the plaintiffs solicitor, Mr
Denis O’Sullivan.
2. The
Taxing Master gave his determination on the matter on 28th May 1998. Both
sides carried in objections. Having considered these objections the Taxing
Master gave his written review of the taxation on the 4th March 1999. The
plaintiffs then applied to the High Court to review the taxation. The High
Court (Geoghegan J.) carried out a review of the Master’s taxation. The
learned High Court judge in his reserved judgment given on 3rd December 1999
increased the amount of the brief fee for the High Court action to be paid to
senior and junior counsel but otherwise confirmed the determinations of the
Taxing Master. It is from the judgment of Geoghegan J. that the plaintiffs
have appealed to this Court.
3. The
factual background to the proceedings is set out by the learned High Court
judge in his judgment. The plaintiffs were graduates of Queen’s
University Belfast who had attained the degree of Bachelor of Laws (LL.B.).
They sought a declaration that they were entitled to the same recognition and
the same exemption from the first part of the final examination of the Law
Society as was afforded to graduates of the National University of Ireland, the
University of Dublin and the University of Limerick who held a primary degree
in law of one of those universities or who held a primary degree partly in law
and partly in another discipline. They also sought a declaration that the
first and second named defendants were guilty of wrongful discrimination as
regards graduates in law of Queen’s University Belfast. The plaintiffs
also made a claim for damages including aggravated and/or exemplary damages for
conspiracy and/or breach of duty and/or breach of statutory duty and/or for
alleged wrongful interference with the right asserted by some of the plaintiffs
and/or breach of duty under the laws of the European Union and under the
European Convention of Human Rights. The proceedings were heard in the High
Court before Laffoy J. A number of issues were raised at the hearing but the
only issue on which the plaintiffs were successful was in establishing to the
satisfaction of the trial judge that Regulation 15 of the Law Society
Regulations of 1991 (which excluded Queen’s University from the
exemption) was invalid as being discriminatory and contrary to Article 6 of the
Treaty of Rome. Laffoy J. however refused to make a specific declaration to
that effect and made an order for costs in favour of the Law Society.
4. The
plaintiffs appealed her order to this Court. The appeal was listed for hearing
but prior to the hearing, on 3rd October 1995, the Law Society announced that
it had agreed to amend the relevant regulation and to extent the exemption to
graduates of the Queen's University Belfast. When the appeal came before this
Court, therefore, the main issue was the question of costs. The plaintiffs
also sought a specific declaration that the original regulation was invalid as
being contrary to Article 6 of the Treaty of Rome. In addition the plaintiffs
pressed for an entitlement to damages for conspiracy. The decision of this
Court was given in an ex-tempore judgment by Hamilton C.J. on the 6th February
1996. In this judgment the Court robustly rejected the plaintiffs claim for
damages and all allegations of conspiracy, but allowed the appeal to the extent
of making the declaration as to the invalidity of the regulation and awarding
to the plaintiffs against the Law Society the costs of the High Court on the
basis of an eight day hearing and limited to the issue of the invalidity of the
regulation having regard to the Treaty of Rome. The plaintiffs were also
awarded half the costs of the appeal but excluding any costs in connection with
written submissions made to the Supreme Court. This exclusion was based
inter
alia
on the nature of the allegations made against the Law Society and against
individual members of the Society which were contained in the said submissions.
The Order for Costs made by this Court on 6th February 1996 was as follows:
6. When
the review of taxation came before Geoghegan J. in the High Court four items
were in dispute, as follows:
7. It
was not, of course, in dispute that junior counsel would receive the normal
brief and refresher fees of two thirds that of senior counsel.
8. As
far as the items in dispute were concerned, the decisions of the Taxing Master
were as follows:
9. In
the High Court the plaintiffs sought an upward revision of all these fees. The
learned High Court judge, having considered the submissions of counsel and
surveyed the applicable law, upheld the determinations of the Taxing Master
with regard to the solicitor’s instruction fee, senior counsel’s
refreshers in the High Court, and senior counsel’s brief fee in the
Supreme Court. For a number of reasons, which he set out in his judgement,
Geoghegan J. increased the amount allowed for senior counsel’s brief fee
in the High Court from £12,600 to £21,000.
10. In
allowing this increase the High Court judge firstly stressed, as did the Taxing
Master, that this was a case which was largely barrister-led. At page 9 of his
judgment he stated:-
11. Geoghegan
J. considered that in the preparation of the case Dr White had carried out work
which would normally be done by a solicitor. There was no suggestion of
unprofessional conduct. The learned judge stated (at page 10):
12. In
the proceedings brought by the plaintiffs specialised knowledge, which was
possessed by Dr White, was required in comparing the law of the Republic of
Ireland with the law of Northern Ireland. The judgment concluded that there
seemed
“little
doubt that he (Dr. White) put an exceptional amount of sweat and energy into
the preparation and conduct of the case”.
13. Geoghegan
J. also considered that the Taxing Master fell into error in failing to
appreciate the true importance of the case. At page 12 of his judgment he
dealt with this factor:
14. The
High Court judge also believed that the Taxing Master had laid too much stress
on the word
“issue”
in the costs order made by this Court. He said that what was allowed to the
plaintiffs in reality was the costs of an eight day action claiming the
invalidity of the relevant regulation on the grounds of discrimination.
15. Finally
Geoghegan J. dealt with the question of comparison with the fees marked by
senior counsel for the Law Society. Both before the Taxing Master and in the
High Court it had been submitted on behalf of the defendant that the brief fee
to be allowed to senior counsel for the plaintiffs should be related to that
charged by each of the senior counsel appearing for the defendant, which fees
were considerably lower. The learned High Court judge disagreed with this
approach. He concluded his judgment thus:
16. In
a lengthy notice of appeal to this Court dated 20th December 1999 the
plaintiffs seek an upward revision of all the fees as determined by the High
Court. The grounds of appeal are many and varied. The first three grounds
deal with a statement made by the High Court judge in the course of his
judgment that at the material time Dr. White, as well as being a senior counsel
of the Irish Bar, was a member of the academic law staff at Queen’s
University Belfast. It is stated in the grounds of appeal not only that this
is inaccurate but also that this finding
“was
fundamentally unfair and unjust and wrongly disparaged said senior
counsel’s reputation and good name”
.
17. Ground
4 in the notice of appeal challenges the finding by the High Court judge that
senior counsel
“devised,
prepared, managed and ultimately fought”
the action. Grounds 5 to 14 challenge in various ways the findings of the High
Court in regard to the amount and nature of the work done by senior counsel in
the case.
18. Further
grounds deal with the decisions of the High Court regarding the
solicitor’s instruction fee, the refreshers allowed to counsel, and
counsel’s brief fee in the Supreme Court.
19. In
his detailed written submissions to this Court senior counsel for the
plaintiffs, Dr. White, dealt with the background to the proceedings and their
history. In both his written and oral submissions he laid great stress on the
evidence given by both himself and Mr O’Sullivan, solicitor for the
plaintiffs, before the Taxing Master. This evidence concerning the level of
their fees, he said, had not been adequately challenged by the defendant Law
Society, nor had the Society brought proper evidence to contradict it. Dr.
White argued that in the absence of countervailing evidence the Taxing Master
was bound by the evidence given on oath by himself and Mr O’Sullivan. He
should therefore have allowed the fees claimed by them without making any
reduction. Where the findings were made otherwise than in accordance with the
evidence the verdict must have been governed by prejudice.
20. Dr
White went on to detail the extensive and skilled nature of the work carried
out by Mr O’Sullivan in preparing and running the case in the High Court.
The fee allowed by the Taxing Master, and confirmed by the High Court, in no
way reflected the level of commitment and expertise involved in the case, he
said. Nor did it reflect the enormous importance of the case and the intensely
difficult position of Mr O’Sullivan in
“suing
his own Society”
.
21. With
regard to his own brief fee for the High Court action, Dr. White objected to a
comparison made by the learned High Court judge with the fee that
“solicitous
parents”
would have been willing to pay for counsel in such a case. In his written
submissions he states (which is obvious) that he had not been instructed by
“solicitous
parents”
and goes on to say:
22. Senior
counsel for the plaintiffs also rejected all comparisons with the fees charged
by counsel for the Law Society, Ms Finlay and Mr Fitzsimons, which he described
as
“astonishingly
smaller”
.
In his written submissions he provided a lengthy analysis of the fees marked
by these counsel. This submission was, however, unnecessary, since the learned
High Court judge had, in my view correctly, clearly rejected any comparison
with the brief fees marked by counsel for the defendant. The defendant had not
appealed against this finding, which accordingly must stand.
23. In
both his written submissions and his oral submissions to this Court senior
counsel for the plaintiffs laid considerable emphasis on the statement
contained in the judgment of the High Court that he (Dr White) was a member of
the academic staff of Queen’s University Belfast. He argued that this
created a wrong impression of his role vis-à-vis the plaintiffs. In
relation to this matter Dr White in his written submissions argued as follows:
24. In
his oral submissions to this Court Dr White followed the same lines. He stated
to the Court that at no time had be been a member of the academic staff of
Queen’s University Belfast. He explained that during the relevant period
he had, for reasons which he did not explain, been resident in Belfast, and had
given a number of lectures as a visiting lecturer to law students in
Queen’s.
25. In
regard to senior counsel’s refresher fees in the High Court, Dr White
stressed the number of new matters which arose and the new documents which were
produced, during the course of the trial. All of this necessitated a great
deal of extra work by both solicitor and counsel on each day of the trial.
26. With
regard to the brief fee in the Supreme Court Dr White again submitted that the
fee originally marked had not been properly challenged in the hearings before
the Taxing Master. Full preparation for the appeal was required to be carried
out. The plaintiffs could not know that the Law Society would amend the
regulations prior to the hearing of the appeal.
27. Senior
Counsel for the defendants, Mr Connolly, accepted the findings of the High
Court in regard to the relevant fees. He submitted that the Taxing Master had
given careful consideration to the submissions and the evidence before him, as
could be seen from his detailed determinations. It was clear that he was
acting within his jurisdiction. Mr Connolly submitted that Dr White’s
arguments in regard to the oral evidence before the Taxing Master were wrongly
based. The hearing before the Taxing Master was not comparable with a trial
before a judge or jury. The Taxing Master had a wide discretion, based on his
expertise and experience as a solicitor, to have regard both to the oral
evidence and to the documentary evidence before him, as well as to the expert
submissions of the legal costs accountants. He also had a discretion to rely
on his own experience of the level of costs and fees in comparable cases.
28. Traditionally
the High Court was slow to interfere with the Taxing Master’s
determination in regard to solicitor’s instructions fees, since judges
felt that they lacked the Taxing Master’s expertise in such matters.
29. Senior
Counsel for the defendants went on to refer to the criteria applicable for the
determination of appropriate costs in any action before the Taxing Master which
were set out in Order 99, Rule 37(22)(ii) of the Rules of the Superior Courts
1986. He pointed out that the sum total of these criteria had been succinctly
summarised by Barron J. in
Best
v Wellcome [1996] 3 I.R.378 at page 387
where the learned judge stated:-
30. Mr.
Connolly submitted that both the Taxing Master and the learned High Court judge
had borne these criteria in mind and correctly employed them in the instant case.
31. Mr
Connolly also submitted that the jurisdiction of the High Court ( and in turn
this Court) to interfere with allowances made by the Taxing Master had been
considerably restricted since the introduction of Section 27 of the Courts and
Courts Officers Act 1995. He referred to a number of cases where reference had
been made to that section.
32. Mr
Connolly went on to open a number of extracts from the transcripts of both
hearings before the Taxing Master, which, he argued, supported the Taxing
Master in the determinations which he had made.
33. The
modern statute law governing the matters at issue in this appeal is set out in
Part VI of the Courts and Court Officers Act 1995. Section 27 sub-sections
(1) and (2), as relevant to the powers and duties of the Taxing Master of the
High Court, provide as follows:
34. The
criteria applicable to the determination of appropriate costs in any action
before the Taxing Master are set out in Order 99 Rule 37(22)(ii) of the Rules
of the Superior Courts 1986. This rule deals specifically with the question
of instructions fee as follows:
35. These
criteria, as pointed out by Mr Connolly, have been summarised by Mr Justice
Barron in
Best
v Wellcome [1996] 3 I.R.378 at 387
as follows:
36. This
summary has been accepted and approved in later cases. The Taxing Master
referred to these three criteria in his taxation and review in the present
case. In his judgment (at page 6) Geoghegan J. in the High Court stated:
38. Kelly
J. agreed with this statement in
Tobin
and Twomey Services Limited v Kerry Foods Limited [1999] 1 ILRM 428,
as also did Laffoy J. in
Minister
for Finance v Goodman (unreported 8th October 1999)
.
39. In
all these dicta emphasis is placed on the necessity for the Court to find that
the decision of the Taxing Master is not only in error but also unjust.
40. If
the plaintiffs are to succeed in this appeal, they must establish that the
trial judge in the Court below erred in holding that the decisions of the
Taxing Master on the solicitor’s instruction fee in the High Court, or
senior counsel’s refresher fees in the High Court, and/or senior
counsel’s brief fee in the Supreme Court were not unjust; alternatively
they must show that the learned trial judge erred in the increase to
£21,000 which he made in senior counsel’s brief fee in the High
Court action.
41. The
High Court judge’s decisions in regard to senior counsel’s brief
fee and his solicitor’ instruction fee in the High Court are
inter-related. The learned judge rightly accepted the crucial importance of
the case to the plaintiffs and indeed to future law graduates of Queen’s
University Belfast generally. He considered that the Taxing Master had not
given sufficient weight to this factor, and in this I would agree with him.
42. He
also considered, as had the Taxing Master, that the case was
“barrister-led”.
He suggested that the case was
“devised,
prepared, managed and ultimately fought by Dr. White”
.
Dr White in his submissions to this Court argued that this was not a correct
picture. However, the trial judge’s finding is clearly supported by the
evidence given by Dr White himself before the Taxing Master. A reading of the
transcript of the hearing shows clearly the immense amount of work done by Dr
White, who claims to have devoted himself exclusively to the preparation of
this case for a period of three months.
43. Geoghegan
J. gave some weight to the fact that, as he believed, Dr White was a member of
the academic staff of Queen’s University. Dr White informs this Court
that he was never a member of the academic staff of Queen’s University
Belfast and the Court of course accepts that this is so. Nevertheless he was
at the material time living on a continuous basis in Belfast and he appears to
have had a relatively close connection with the university. He gave occasional
lectures in the law school. As a distinguished legal academic of the National
University of Ireland he was on his own evidence known to the members of the
Faculty of the Queen’s Law School. He was at least aware of the
initiation of the proceedings. The only plaintiff to give evidence in the
trial before Laffoy J., Corann King, stated that it was Dr White who initiated
the proceedings and described him as being involved in drafting a petition
which was then circulated to the students and signed by them. Dr. White in
this Court asserted that she was mistaken in her evidence. Nevertheless Dr
White was closely and personally involved in the preparation of the case from
the beginning and it was he who had personal contact and an unspecified number
of consultations with the plaintiffs in Belfast. This is perfectly
understandable, since his solicitor, Mr O’Sullivan, was running a busy
practice in Cork, but it is nonetheless a factor to which weight must be given.
Dr White denies that he provided his solicitor with witness statements and I
accept this. However, he provided most detailed advices on proofs including
outlines of the evidence that needed to be given by the various expert
witnesses and, with the valuable assistance of his junior counsel, Mr Horgan,
dealt with the necessary survey of the law both in the Republic of Ireland and
Northern Ireland in the light of the courses followed by the plaintiffs in
Queen’s University and of the examination criteria of the Law Society.
There is no doubt that considerable credit is due to Dr White’s
commitment to his clients who in the eventual outcome succeeded in the main aim
of their proceedings.
44. It
seems to me unfortunate that Dr White in his submissions to this Court
characterises what was undoubtedly an inadvertent error on the part of the
trial judge, in stating that Dr White was a member of the academic staff of
Queen’s University, as being in some way a malevolent attack on his
integrity and likely to damage his reputation. I find it difficult to follow
the logic of Dr White’s position on this issue. It seems to me quite
irrelevant to the questions before this Court; what is important is not the
exact position which Dr White held in Belfast (which he has not revealed to the
Court) but the fact that he was
in
Belfast and in contact with the plaintiffs and the Queen’s Law School.
45. In
my view the learned trial judge had an abundance of evidence before him to
enable him to reach the conclusion which he did in regard to senior
counsel’s role in these proceedings and I agree with his conclusions. As
far as the actual increased figure of £21,000 is concerned, it appears to
me to be in every way reasonable, bearing in mind that costs were awarded for
an eight day hearing only and solely in connection with the Article 6 issue.
46. The
other side of this coin, however, is the role played by the plaintiffs
solicitor. During the course of Mr O’Sullivan’s evidence before
the Taxing Master the defendant’s accountant raised the question as to
why the plaintiffs had instructed a Cork solicitor when they were living in
Belfast. Mr O’Sullivan explained that he had offered to take on the case
in conversation with a member of the academic staff of Queen’s whom he
had met at a social function. Mr O’Sullivan was well accustomed to
working with Dr White and Mr Horgan; he instructed them regularly,
particularly in judicial review cases. However, the fact that he was in Cork
and his thirty five clients were in Belfast meant that he had little actual
contact with them. He attended one consultation in Belfast in December 1994;
on his evidence to the Taxing Master he had never been in Northern Ireland
before and suffered considerable fears as to the dangers he might, as a citizen
of the Republic of Ireland, face once he crossed the Border. He subsequently
met a number of the plaintiffs in Dublin when they attended a preliminary
application to the High Court, but it is clear that he did not bear the normal
burden of repeated consultations with plaintiffs which would have arisen in a
case of this complex nature.
47. Bearing
in mind the three criteria set out by Barron J. in
Best
v Wellcome
,
I accept, as did Geoghegan J., that Mr O’Sullivan did a large amount of
work in this case, a major proportion of which was done at the direction and
under the supervision of Dr White. In his evidence to the Taxing Master Mr
O’Sullivan himself was somewhat vague as to the exact number of hours of
work he had put in over the period and he does not appear to have kept accurate
records which would have assisted the Taxing Master in reaching a conclusion as
to the proper level of fee.
48. It
does not appear that Mr O’Sullivan himself had any special expertise in
the areas of law which were dealt with in the proceedings and while he
undoubtedly bore considerable responsibility in the case, the lion’s
share of the responsibility in the preparation, management and running of the
case was, on the evidence, borne by Dr White.
49. At
page 6 of his judgment Geoghegan J. refers to a passage from the Taxing
Master’s review of the taxation which he quotes as follows:-
50. The
learned High Court judge approves this passage and concludes at page 8 of his
judgment that there was nothing in any of the evidence to suggest that an
instruction fee of £76,000 was unfair or unreasonable and he affirmed the
determination of the Taxing Master. In my view he was correct in that
conclusion.
51. In
dealing with the level of refreshers allowed by the Taxing Master, senior
counsel for the plaintiffs asserted that each of the two senior counsel for the
defendants had marked refreshers of £2,000 per day. He submitted that he
should therefore have been allowed a refresher equal to the sum of these - in
other words £4,000 per day.
52. In
considering this matter the trial judge asked in Court whether there was
precedent for any refresher in High Court litigation being allowed on taxation
at a higher figure than the £3,150 determined by the Taxing Master. He
was not presented with any such precedent. He went on to state:
53. In
my opinion Geoghegan J. gave proper weight to the factors involved in
determining the level of refreshers, and I see no reason to disturb his
conclusion.
54. In
dealing with the level of senior counsel’s brief fee in the Supreme Court
Geoghegan J. pointed out that the substantive issues in the case were not
really addressed in the Supreme Court except insofar as they related to the
procedural matter of the form of relief which should be granted in the order
and the question of costs. He concluded that the brief fee in the Supreme
Court was therefore not related to the brief fee on the hearing of the action.
He could find no error in principle or otherwise and no element of injustice in
the fee of £10,000 allowed by the Taxing Master. I agree with his
conclusions.
56. Two
matters, however, remain to be mentioned. The first is that in both his
written and his oral submissions to this Court senior counsel for the
plaintiffs raised the question of the solicitor’s instruction fee in the
Supreme Court as determined by the Taxing Master. He argued that this fee was
so low as to be unjust. It is difficult to understand how this matter arose
before the Court in any shape or form. The solicitor’s instruction fee
in the Supreme Court was not dealt with in any way by the High Court in its
review of the taxation. It is mentioned neither in the High Court Order of the
3rd December 1999 nor in the Notice of Appeal. Clearly it forms no part of the
appeal that is before this Court and the fee which was fixed by the Taxing
Master must stand.
57. The
second matter gives rise to more difficulty. The written submissions to this
Court made on behalf of the plaintiffs contain a number of allegations against
the trial judge. Firstly it is stated that he unjustly accused senior counsel
for the plaintiffs of professional misconduct. This allegation is completely
unfounded. The learned trial judge specifically stated at page 10 of his
judgment
“there has been no suggestion here of unprofessional conduct”
.
58. More
seriously, it is alleged that the learned judge was
“compromised”
in
trying the case because one of the senior counsel acting on behalf of the
defendant was his wife. Dr White embarked upon again raising this allegation
in oral argument. The Court was then informed by Mr Connolly, senior counsel
for the defendant, that at the commencement of the trial Geoghegan J. had
specifically asked whether, on account of Ms Finlay’s participation, any
party objected to his trying the case. He was happy to transfer the matter to
another judge. He was assured by all parties, including counsel for the
plaintiffs, that no such objection arose.
59. It
appears that Dr White did not act for the plaintiffs in the Court below and was
not himself a party to this exchange of views. However, it is difficult to
believe that he was not made aware of it; for example, his present junior
counsel, Ms Seligman, also acted as junior counsel for the plaintiffs in the
Court below.
60. In
the circumstances the making of such totally unfounded allegations against the
learned trial judge must attract the strongest disapproval from this court.
The situation was rendered even more distasteful by the fact that, while Dr
White in this Court accepted Mr Connolly’s account of what had transpired
in the Court below, he went on to argue that his clients were not bound by
their then senior counsel’s failure to object to the trial judge. In
the circumstances where the learned trial judge had expressly asked counsel if
there was any objection to his trying the case, and where counsel for the
plaintiff indicated that no such objection existed, it was extraordinary
conduct on behalf of Dr. White to raise the matter on the appeal. There is no
question of the learned trial judge being compromised.