1. The
Plaintiff was a passenger on a train owned and run by Iarnrod Eireann. It was
travelling between Dublin and Knock in the County of Mayo. Cattle were
travelling across the railway track. The land on both sides of the track was
owned by the second named Defendant, Michael J. Diskin. The cattle were owned
by the third named Defendant, Patrick Diskin. The train and the cattle were in
collision. The Plaintiff instituted proceedings against the first named
Defendant only by a plenary summons dated the 7th November, 1989. A Statement
of Claim between the same parties was delivered on the 18th of December, 1989.
The Defence, delivered on the 15th June, 1990 was the normal traverse with
allegations against Michael Diskin and Patrick Diskin. Notice of trial was
served on the 26th July, 1990. There were a number of people injured in the
collision between the train and the cattle. It looked as if the case in which
Veronica McGovern was the Plaintiff would be first to hearing as she had got
discovery. The Plaintiff in the present case had brought a motion for
discovery on the
2. On
the 23rd September, 1992 application was made by Iarnrod Eireann to join the
two Diskins and for directions. On that date the Diskins were joined as
co-Defendants. The amended Statement of Claim was delivered on the 3rd
November, 1992 and an Affidavit of Discovery was sworn on the 24th November,
1992. It was agreed to give the same discovery as had already been given in
the case of Veronica McGovern. There were the usual Notice for Particulars and
replies and Notices claiming Indemnity and Contributions. The second and third
named Defendants initially entered a joint defence, dated the
4. The
Judgment was reserved. It was delivered on the 26th February, 1993. The Court
found the first and third named Defendants negligent and proportioned liability
30% on the Railway Company and 70% on Patrick Diskin and awarded damages in the
sum of £16,000. The case was adjourned to the 23rd April, 1993 to draw up
the Order. On that date the Court ordered that the Plaintiff do recover from
the first and third named Defendants the sum of £16,000 together with the
costs when taxed and such costs to include the costs of this stay. It was
further ordered:-
6. The
first named Defendant appealed to the Supreme Court the whole of the Judgment
of the 26th February, 1993 and the Order of the 23rd April, 1993 as amended by
the Order of the 25th June, 1993. The matter came before the Supreme Court.
The first named Defendant appealed for an Order setting the High Court Judgment
aside and directing a new trial and the third named Defendant appealed against
as much of the High Court Order as made him liable for damages to the extent of
70%. The matter was argued before the Supreme Court on the 16th, 17th and 18th
November, 1993 and Judgment was given on the 15th December, 1993. The Supreme
Court heard Counsel for the respective Appellants and Counsel for the Plaintiff
and not requiring to hear submissions from Counsel for the second named
Defendant, ordered that the appeals be dismissed and ordered that the said
Judgment and Order of the High Court be varied by adding thereto the following
provisions:-
7. The
Court also gave liberty to apply in the High Court and if necessary to the
Supreme Court in regard to any question arising in relation to the second named
Defendant's costs of the proceedings in the High Court.
8. The
matter came before Johnson J. again on the 20th December, 1993. The Court
deleted from it's Order of the 25th June, 1993 "where such costs as are
attributed directly to separate representations" by the substitution therefore
of the words "such costs as are attributable solely to the separate
representation of Michael Diskin".
9. The
matter came before this Court by way of three motions to review taxation of
costs by Taxing Master Flynn. There are two motions brought at the behest of
Irish Rail who are the first named Defendants in the principal action. These
motions are directed against the Plaintiff and against the second named
Defendant, Michael J. Diskin and the Plaintiff brought a Motion against Iarnrod
Eireann in relation to one issue only, namely, the Solicitors Instructions Fee
for the Plaintiff.
10. The
learned Taxing Master proceeded to tax and hear objections in this matter. The
objections were heard on the 27th and 30th June, 1995. The Taxing Master
issued his report in July of 1995.
11.
The McGovern case was first on the list. It was set down for trial in Dundalk
but since it would take at least two weeks, it was transferred to Dublin
sometime around the end of 1992. Apparently, the Solicitors involved for the
various Plaintiffs did then get behind the present case as the test case. It
was the contention of Irish Rail that all the ground work that was necessary
for the running of the test case was done in the McGovern case which was ready
to go on until it was adjourned to Dublin and the Gaspari case then came ahead
of it in the list.
13. Senior
Counsel £20,000. Taxation was reduced to £18,900 but on objection
was restored to £20,000 and £3,000 for refresher was allowed on
taxation and again on objection. Junior Counsel fees would of course be the
appropriate two-thirds of that being allowed to Senior Counsel. The
Plaintiff's Solicitors' instructions fee claimed at £150,000 reduced on
taxation to £90,000 and maintained on objection at £90,000. The
first named Defendant says that Senior Counsel's fee should be £7,857,
refreshers of £1,575, the Solicitors Instruction Fee of £44,250. The
first named Defendant was aware of claims up to 191 "in the pipe line". There
were undoubtedly very serious implications for the Railroad Company in relation
to accommodation crossings and the law in relation to them. They agreed a
special fee with their Senior Counsel at £25,000 and a daily refresher of
£2,500. The second Defendant's costs resulted in a brief fee claimed at
£26,250 for Senior Counsel reduced on taxation to £18,900 and on
objection mostly restored to £25,000. The Solicitor's Instruction Fee was
£118,500 reduced on taxation to £75,000 and on objection to
£70,000. Undoubtedly this case had decided the issue in all the other
cases even though it had not been intended initially to be the test case. The
Rail Company strongly made the case of Mr. Gaspari in his case not being a test
case prior to the Autumn of 1992. It was the McGovern case that they claimed
was the test case. On the McGovern case being adjourned from Dundalk to Dublin
thereby delaying the starting time for that trial undoubtedly the present
Plaintiff was suddenly the front runner. .
14. Mr.
Hanna, S.C. who led for Iarnrod Eireann very ably argued primarily that the
Taxing Master ignored comparisons given by Mr. Fitzpatrick who was the Costs
Drawer for the first named Defendant as not being comparable. He argued that
the Taxing Master was wrong to disregard them and even if they were to be
discounted, they should not be lightly disregarded and "should be afforded more
salt than the Master gave to them". He relied too much on Mr. Behan and Mr.
Lowe the other Costs Drawers involved. He also argued that it became a test
case at a very late stage and that much of the work had already been done and
had a wider order of discovery than in the Gaspari case. He argued that the
burden from an intellectual point of view was shared by at least another firm
of Solicitors and that the Plaintiff had a Barrister employed in relation to
discovery and his fees had been discharged in full. The documents were in
three or four separate locations. One in Athlone and the others in Dublin.
Mr. Ferry says his office was taken over with this case with people
photocopying over long periods of time. By merely dismissing Mr. Fitzpatrick's
list of comparisons, the Taxing Master was basically unfair. It was then
argued that the Taxing Master enforcing the Order of the 23rd April, 1993 where
it is directed that : -
15. Mr.
Hanna says that the Taxing Master did not say he was enforcing the Order of the
23rd April, 1993 but what he has done is treat that Order as it stood,
unaltered and unamended. The Order was amended. The costs awarded to the
second Defendant were to be limited only to what was "attributable directly to
separate representation". This correction was not made by the trial Judge but
was made in the office. The matter came again before
16. Mr.
Justice Johnson on the 20th December, 1993. He cleared up any problem, real or
imaginary, about the Order made in the office apparently on the 25th June,
1993. He provides an amendment of the Order by deleting therefrom "such costs
as are attributed directly to separate representations" and by the substitution
therefore by the words “such costs as are attributable solely to the
separate representations of Michael Diskin". Mr. Hanna argues that Michael
Diskin was wrongly given full costs as if he were an individual Defendant
before the Court in that capacity.
17. In
his ruling on objections on the bill presented by the second named Defendant,
the first named Defendant, the learned Taxing Master says at page 10:-
19. It
is Mr. Hanna's argument that although the Order of the 20th December, 1993
manifestly orders the Taxing Master, as to what is to be done. He is not
following the Order but he is basing his views on the Judgment of the Court and
is interpreting the Judgment treating the first Order of the 23rd of April,
1993 as the relevant one. Mr. Hanna then quotes the Taxing Master at page 18
of OP.CIT:-
20. Mr.
Hanna suggests that these were to say that he found no distinction or at least
has indicated that he had found no distinction between the second and third
named Defendants. It also transpired that there was a document before the
Taxing Master suggesting that Counsel for the second and third named Defendants
split the fees fifty/fifty, this was not an Order for costs. This was
presumably on the old adage "no foal, no fee" and the idea though much
condemned has led to ambulance chasing. However, in practice,
providing a free legal aid service, most Counsels do at least some of their
workload on such a principle, and actually do not get paid at all. They hope
to get paid but they realise that if they do not succeed, their client will not
pay their fees. It is to the credit of the Bar that they operate this system
for so long without much public appreciation.
21. In
the view of this Court the Master was manifestly dealing with the last Order
and his putting it in context having regard to what was said by Johnson J.
during trial and at making of Order and as reported in both barristers' letters.
22. It
appears that there was a meeting at which Mr. Fitzgerald, S.C. directed a
certain course. This seems to have been on the 16th November, 1992 although
there is some suggestion that it might have been in October. Mr. Hanna
suggested that really there was no great involvement by the Solicitors until a
few days before the trial, in relation to separate representation but I think
it would be proper to take it from October/November 1992. Mr. Hanna argued
that since the Plaintiff got £90,000 as instructions fee for the
Plaintiff, £70,000 for the second named Defendant who did not have nearly
as much an involvement, is too high. The final item was the fee due to Doctor
Bielenberg. He had sworn that he was retained in this case by Patrick Diskin,
the owner of the cattle. Dr. Bielenberg subsequently stated he was employed by
both Diskins and had in fact had consultations with their respective Senior
Counsel. The Taxing Master accepted that and allowed the moiety of 50% of Dr.
Bielenberg's fees. Mr. Hanna argues that the involvement as far as the second
named Defendant was significantly less than the nature and level of his
involvement on behalf of the third named Defendant who was the unsuccessful
Defendant. Originally, he swore he was retained by only one Diskin but he
explained that subsequently which is, I think, reasonable.
23. Mr.
Hanratty, S.C. addressed the Court on behalf of the Plaintiff. Originally his
case was an ordinary one in which he sued the carrier who was bringing him as a
pilgrim to Knock. The relevant period would be from October 1989 when he
instructed his Solicitors to October of 1992 when his case became a test case.
It then became a much more important case than it had been previously. The
object was to recover £16,000 damages and he had to go to the High Court
or the Supreme Court for his entitlements. To achieve it, he had found from
the very outset an appalling gauntlet because in effect he had to satisfy the
Court by discharging the onus of proof which was upon him. He was contending
how the Railway system, particularly relating to those crossings, should be run
and was capable of being run. The manner in which the Defendant Railway
Company ran the Railway system in relation to crossings was the wrong way. The
onus of proof to recover his admittedly modest damages was appalling and the
potential costs involved in discharging that onus was utterly disproportionate
to the damages in issue. When it became apparent that the Gaspari case was now
going to be the first case for hearing, it put a considerable onus on the
lawyers involved. They brought an application to join the two Diskins as
Defendants. The entire case had to be repleaded. A new Statement of Claim was
delivered against all the Defendants including the new joint Defendants. The
defences were delivered by the newly joined Defendants and in it's amended
defence by Iarnrod Eireann. Few of these defences' books had to done again.
Mr. Ferry had assistance only from people who had volunteered and who had an
interest in other cases. He had taken into consideration over 100,000
documents. He sorted 20,000 as relevant documents. He then went through a
further reduction of 20,000 to 2,000. They then had to put them into some kind
of comprehensible format and be indexed. Mr. Hanratty stressed that Mr. Lowe's
evidence and Mr. Ferry's evidence was unchallenged before the Taxing Master.
He submitted that one must look to see did the Taxing Master apply the correct
legal principles and were they correctly applied having regard to the evidence.
If both these conditions are fulfilled, the High Court will not and should not
interfere. Mr. Hanratty contests that this was a test case. Mr. Hanna
disputed that fact and wanted to produce fresh evidence in an attempt to show
that the McGovern case was the test case all along. This is the kernel of the
case. It is a test case on which 191 claims depend and then that is certainly
a matter to exercise the mind of the Taxing Master who is dealing not merely
with the instructions fees but also with Counsels' fees. He argued that Mr.
Fitzpatrick's calculations of the appropriate fees premised on the proposition
that this was not a test case. This was a case which ran for twelve days in
the High Court with an award of £16,000. It was the first of 191
potential claims. There were also claims by the Diskins against Iarnrod
Eireann presumably for damage to their cattle and by Iarnrod Eireann against
the Diskins presumably for damage to the train. Mr. Hanratty insisted that the
Taxing Master had paid attention to Mr. Fitzpatrick and refers to page 17 of
his report. Mr. Hanratty states that the hypothetical terminology was
introduced by
Smith
-v- Tunney
1993 1 IR 451 but that in fact the rule laid down in
Dunne
-v- O'Neill
1974 IR 180 is utterly and completely intact. In this he is inaccurate as
"hypothetical" was used by Gannon J. in
Dunne -v- O'Neill.
The work done by the Plaintiff's Solicitor occupies nearly 100 pages. It is
obvious that the Plaintiff's Solicitor had an enormous task in what was an
extraordinary case. Mr. Hanratty stressed that they have qualified under every
single heading in Order 99 Rule 22 of the Rules of the Superior Courts.
24. Mr.
Hanratty had brought a Motion himself on the grounds that the instruction fee
of £90,000 is inadequate having regard to the work which was done, the
scale of the work which was done and the time constraints within which it had
to be done. Mr. Lowe had suggested a figure of £150,000 and Mr.
Fitzpatrick, on the grounds that it was not a test case, was £44,000. He
queried the findings of the Taxing Master on this point on two grounds.
Firstly, Mr. Fitzpatrick's testament comes on the basis that it was not a test
case and secondly, relying on the
Crotty
-v- Ireland
1990 1 ILRM 617 case and the
Brian
Clarke -v- Noel Hearty
case that the Defendant's fees on taxation will be roughly one-third less than
those of the Plaintiff. Mainly because the lawyers appearing for the Defendant
will normally be on a panel and can expect to get a great deal of work from
that source. They argued that if we look at the difference in the scale of
work which was done by the Plaintiff's Solicitor compared to the second named
Defendant's Solicitor, it immediately becomes apparent that there is a lack of
proportionality. It becomes apparent even if you consider only the question of
discovery, that item alone will account for more than the difference as between
the two Solicitors which is only £20,000. The Solicitors for the second
named Defendant did not have to plead the case twice. They did not have to
comply with Counsel's advices on proofs twice. They did not have to deal with
the extensive difficulties which were involved in the case. They did not have
the twenty-eight applications referred to in the summary. Most particularly,
they were not involved in a case between October of 1989 and October of 1992.
They only came into the case in October 1992 and yet the difference between
them is only £20,000. Mr. Hanratty pointed out that the Taxing Master at
page 19 of his report states:-
26. In
the opinion of this Court, the Taxing Master having regard to that plea and
what actually happened at the subsequent hearing was wrong to treat it as akin
to the work which would have been involved in a personal injury action of
assessment only. The Taxing Master was meticulously careful in preparing his
report as we will see later. However, he certainly seems to have made an error
at this point. At the end of the case, the first named Defendant sought to
raise the constitutionality of the Civil Liability Act. He was allowed to do
so by the learned Trial Judge but this decision was reversed on appeal. This
was also a matter which the Taxing Master should have considered when he was
dealing with this instruction fee. It was also clear that the Taxing Master on
three occasions thought that Mr. Fitzpatrick had suggested a fee of
£25,750 but Mr. Hanratty very fairly points out that in fact the Taxing
Master was in error on this point and that nowhere did Mr. Fitzpatrick give
such a figure. Indeed, Mr. Fitzpatrick seemed to come around slowly to the
view that it might be a test case. Mr. Fitzpatrick's lowest figure was
£44,000 but it is possible that the Taxing Master, having mentioned a
figure of £25,750 on three occasions, got that figure in his mind when he
reached £90,000.
27. Mr.
Gordon on behalf of the third named Defendant does not seek any alteration in
the bill. Mr. Gordon points out that one must look at the circumstances of all
the parties and that it was cynical of Iarnrod Eireann to say that they were
exposed to a claim of about £4,000,000 arising out of this crash. They
would continue in business if they had to discharge that amount of money. Mr.
Michael Diskin's circumstances according to Mr. Hanna was not on a par with the
railroads. Mr. Gordon contended that this was an absolute fallacy. If the
railroad company lost, the tax payers would have to pay for it. That is the
reality. If the Plaintiff lost his case, ultimately he could survive in life
without the £16,000 he got. If Mr. Michael Diskin was held 1% responsible
for what happened. Everything he had in life was gone. He and his son had
been joined in all the cases as Defendants. He was facing over 100 writs. He
was fortunate in the best tradition of the legal profession to find a Solicitor
and Barrister who would work for him on a no-foal no-fee basis, who gave him
great service. This was certainly a test case. It may have become a test case
late in the day but it was a test case. Mr. Gaspari was only concerned with
this one case but all the Defendants were concerned in all the other cases.
Even though the same firm acted for the two Defendants, a different Solicitor
from the firm attended on behalf of each Defendant. The Taxing Master looked at
the figures and came to the conclusion that the proper thing to do was to allow
Messrs. Walsh Warren half the fees that they would normally be entitled to
under Appendix W. The pleadings were common to both Defendants up to a certain
point. Mr. Michael Diskin could not have avoided having any dealings at all.
28. Mr.
Hanna in his closing address pointed out that Irish Rail did not know it was a
test case and in fact when the McGovern papers came to be taxed it claims to be
a test case. However, it appears that on the 13th October, 1992. The
Solicitors of an-ad hoc committee who were co-ordinating all of the claims or
most of them decided that the Gaspari case was to be run as the test case. Mr.
Hanna insisted that Mr. Fitzpatrick's approach and therefore his comparisons
were on the basis that this was a test case, in effect. And at page 5 of the
transcript the hearing before the Taxing Master, Mr. Fitzpatrick clearly states
"I submit this is not clearly an average case". He refers to a number of cases
and examples in the context of same, this is a case out of the ordinary.
29. He
therefore contends that Mr. Hanratty's premise that it be treated as other than
a test case is illusory. He argues that the suggestion by Mr. Hanratty that
the "hypothetical Counsel" is something which evolved from the seminal case of
Dunne
-v- O'Neill
,
(1974) I.R. p. 180 is untrue. The actual phrase "hypothetical Counsel" is
cited with approval by Gannon J. at page 191 of that judgment. He argues the
first principal is acceptance in law of this test of the hypothetical Counsel
briefed by the hypothetical reasonable and prudent and experienced Solicitor.
He argues that the Taxing Master was wrong when he referred his special fee as
being a comparison. He was also wrong in saying that the special aspect was
accommodated by the fact that a second Counsel was retained at the same fee.
The Court suggested that the second senior might have been retained at "the
ordinary" fees, that surely if he were at the same "special fee" as the
retained senior then it became the ordinary fee in an extraordinary test case.
However, Mr. Hanna argued that it was purely a matter between the clients and
their Barristers. He relied on the views of Mr. Justice McCarthy in the
State
(Gallagher Shatter & Co.) -v- DeValera
,
1991 2 I.R. 198 at pp. 207-8. While that statement of the law deserves the
respect as spoken by a very eminent Judge, it is clearly obiter dicta. It does
not apply to the instant case. It is a minority decision. He also reiterates
his argument that the refresher fees admitted by Mr. Fitzpatrick were more
relevant than those submitted by Mr. Lowe. He also argued that he picked his
time available to the Plaintiff and imposed by the Plaintiff himself. The
Plaintiff set the deadline for the 12th January; Irish Rail did not.
31. He
asks the question if the Trial Judge had not intended it to limit the costs
solely and strictly to the time at which the representation became separate,
why did he amend the Order? The Court held that Iarnrod Eireann were more than
entitled to dispute £100 under the Appendix W items and in the course of
the trial, I pointed out that they were entitled to fight over small things. I
quoted King Lear "It is not much but tis mine own". Mr. Hanna concedes that
the Taxing Master is entitled to prefer one view rather than another but that
the Taxing Master in the instant case is guilty of an unthinking rejection of
clear comparison cases. The error had extended to his analysis of Counsel's
fees to a wrongful analysis of fees that firstly should not have been there,
special fees, and secondly, fees that had in them an important element that is
extraneous to the ordinary situation in the case and that is an agreement to
pay two sets of fees! He also argues the mere fact that Dr. Bielenberg was
consulted by both parties but is then disregarded by one and is produced in the
case to give evidence on behalf of the other is not a fifty/fifty split or
anything like it. They should have adopted a more subtle approach. Mr.
Hanratty then replied on his Motion. He objects strenuously Mr. Hanna's
approach referring to Mr. Fitzpatrick's analysis as:-
32. Mr.
Hanratty states that they had in fact provided an analysis of the work actually
done under a considerable number of sub-headings, many more sub-headings than
Mr. Fitzpatrick had seen fit to include in their objections (red book, tab 6,
last six pages) which effectively contains a summary description of the work
which was done. He also referred again to the passage in the Bill of Costs
where it took seventy pages to describe in detail the work which was done.
That work was summarised and analysed which lies in terms of the headings under
which it was done. Irish Rail had argued that it was not a test case and then
when Mr. Lowe produced a Statement of Claim by Irish Rail, paragraph 8,
pleading that it was a test case, Mr. Fitzpatrick then was batting on an
extremely sticky wicket. The proposition that it was not a test case
effectively became implausible and therefore Mr. Fitzpatrick had to do the best
he could in the circumstances in which he found himself! ..... There are
passages where he seems to accept it is.
33. Mr.
Hanna stated that it was not a test case but then an application was made and
subsequently withdrawn for liberty to adduce new evidence in support of the
proposition that it was not a test case. On the one hand when one is
confronted with the Statement to the effect there was no agreement that it was
a test case and then almost in the same breath a Statement to the effect that
Mr. Fitzpatrick calculated his figures on the basis it was a test case and also
in the same breath a Statement from my friend accepting it was "in the nature
of a test case", it is very hard to resist the conclusion Irish Rail were
trying to hunt with the hound and run with the hare but they cannot have it
both ways. The Court has to make a decision whether or not Mr. Fitzpatrick's
arguments were or were not premised on the proposition that it was a test case.
The Court has to make a finding of fact whether or not it was a test case.
34. Was
there an error on the part of the Taxing Master in treating this as "a test
case" or Mr. Hanna suggests treating it as "if it were a test case".
36. The
first issue with which the Court is concerned is whether or nor this was "a
test case". That is the kernel of this case. The first named Defendant brought
a Motion dated the 4th of August, 1995 for an Order pursuant to Order 99 Rule
38(3) of the Rules of the Superior Courts, 1986 to review the taxation by
Taxing Master Flynn of the items to which objections were raised by the first
named Defendant before the said Master upon the Plaintiff's Bill of Costs
therein and in particular items 159,162, 301 and 304. These were the fees for
Senior and Junior Counsel on the brief. The Motion paper also objects to the
following items, 167, 169, 172, 174, 177, 179, 182, 184, 187, 189, 192, 194,
197, 199, 202, 204, 207, 209, 212, 214, 217, 219, 307, 309, 311 and 314. These
items relate to Senior and Junior Counsels' refresher fees.
37. The
first named Defendant also brought another Motion also dated the 1st August,
1995 querying the allowances of the Master from the second named Defendant's
Bill of Costs. They were items 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14,
36, 37, 38, 39, 40, 41, 42, 43, 44 and 45 (items under Appendix W of the Rules
of the Superior Courts, 1986 and Counsel's fees etc.); and items 50, 54, 181
and 184 (Senior and Junior Counsels' brief fees)
38. Items
61, 63, 66, 68, 71, 73, 76, 78, 81, 83, 86, 88, 91, 93, 96, 98, 101, 103, 106,
108, 111, 113, 187 and 189 (Senior and Junior Counsels' refresher fees).
39. Items
154 and 156 Senior and Junior Counsels' brief fee in relation to the Civil
Liability Act issue. It was agreed by the parties that the Court need not
concern itself with these two items.
42. There
is also a Motion dated the 15th August, 1995 on behalf of the Plaintiff. It
looks for a general review. It only mentions one item, namely, item 324
(Solicitors' General Instructions Fee). These are the matters before this
Court. They have been rehearsed in the submissions of Counsel mentioned in
the earlier part of this judgment.
43. The
Court has considered all of the judgments cited in an earlier part of this
judgment. It is not necessary to rehearse them all. A list of judgments
opened to and considered by the Court are appendixed to this judgment. In
addition the Court looked at
Barry
-v- Spate
1904 2 IR 478 at p. 486 and at
A.G.
-v- Simpson
1963 IR 329.
44. The
seminal case is still
Dunne
-v- O'Neill
1974 IR , the headnote (which is fully supported by the judgment) reads as
follows:-
46. Gannon
J. went on to approve of the concept of the "hypothetical Counsel" based on the
reasoning in
Simpson's
Motor Sales (London) Limited -v- Hendon Corporation
(Number
2)
1965
1 WLR 112.
49. The
only Supreme Court decision directly in point is
The
State (at the
prosecution
of Richard F. Gallagher Shatter and Co) -v- Toirleach De Valera a Taxing
Master
1981 2 1R 198 where at p.205 Finlay C. J. states as follows:-
50. I
have had regard also to the various other authorities to which I was referred
and to the very able arguments of all Counsel and to all the documentation with
which I was provided, with particular regard to the very careful and well
reasoned report of the Taxing Master.
51. I
am satisfied that this was in fact a "test case". It did not start out to be.
Initially it was an action by a passenger against a carrier. However, it then
became necessary to join Michael J. Diskin and Patrick Diskin as additional
Defendants. It became necessary for them to be separately represented. The
McGovern case was the original "front runner". It was listed in Dundalk.
However, it was going to take more than a fortnight and so it was transferred
from Dundalk to Dublin. This meant that the present case was now going to be
the first to be heard. It then became "a test case" or "in the nature of a
test case". Of course some of the work done such as a discovery in the
McGovern case was of assistance in the present case. The McGovern case was, at
least for a period, a test case. Then it yielded because of circumstances to
the present case. The damages were modest but the case had to establish with
clarity the duty of carriers and of persons using accommodation crossings and
was certain to go to the Supreme Court. In my view, the Taxing Master applied
the correct principles and because of the various argument which I have recited
earlier in this judgment, I am quite happy that the Taxing Master was correct
in his assessments with regard to Counsel's fees and refreshers.
52. As
the Court has point out, the Taxing Master was wrong in only allowing
£20,000 difference in the instructions fee. The difference in the scale
of work which was done by the Plaintiff's solicitor compared to the second
named Defendant's solicitor shows there is a lack of proportionality. There is
no rule that the Defendant's fees on taxation will be roughly one third less
than those of the Plaintiff. The circumstances can vary enormously. Each case
must be examined on its own merits. In the circumstances I would allow an
instructions fee of £120,000 This seems to be the appropriate fee having
regard to the various factors urged by Counsel with which I have dealt at an
earlier stage.
53. The
Taxing Master is entitled to prefer one view over another. The Court will not
interfere if it is based on the legal principles enunciated in the various
authorities cited. He was entitled in the present case to prefer the views of
Mr. Behan and Mr. Lowe against those of Mr. Fitzpatrick. Since this Court has
found that this was a test case or was to be treated as a test case, the
approach of the Taxing Master was impeccable.
54. Mr.
Ferry could have decided he did not want this case to become a test case.
However, in the best interest of his client he had the case fixed for the 12th
January. This put great pressure on him, as already recited, he had to change
from an ordinary action against the carrier into a very complex case with
additional parties, a great deal more actual evidence and greater legal
problems. This Court is satisfied that the Taxing Master has clearly,
completely and corectly set out all the appropriate authorities. As already
stated, the Courts should be slow to interfere with the finding of the Taxing
Master and the Court is not indulging in a re-hearing, but merely a review. A
Taxing Master has a wealth of experience, not available to the normal judge, in
dealing with his speciality, namely, tax and costs. The transcript before the
learned Taxing Master shows that he was meticulous in applying the principles.
The first named Defendant really bases his objections on two grounds, namely,
that this was not a test case or in the nature of a test case and, secondly,
that special regard was not held to the comparisons offered by Mr. Fitzpatrick.
I do not accept either propositions and accordingly I will not interfere with
the items mentioned in the two Notices of Motion brought by Iarnrod
Eireann/Irish Rail in relation to the fees marked by Counsel.
55. As
regards the account of Stewarts Limited Farm Management Consultants which
relates to the fee in respect of a witness Dr. Bielenberg, the Taxing Master
was entitled to come to the decision which he reached on the evidence before
him and the Court has no grounds to interfere. As already indicated, I would
allow a variation in the instructions fee on Mr. Hanratty's motion primarily,
but not exclusively, on lack of proportionality.
57. The
Court in addition looked at
Barry
-v- Spate
,
1904 2 I.R. 478 particularly at p. 486 and at the
Attorney
General -v- Simpson
,
1963 I.R. 329.