Judgment Title: Plewa & Anor -v- P. I. A. B. Composition of Court: Judgment by: Ryan J. Status of Judgment: Approved |
Neutral Citation Number: [2010] IEHC 516 THE HIGH COURT JUDICIAL REVIEW 2008 1128 & 1385 JR BETWEEN GRZEGORZ PLEWA AND KRZYSZTOF GINIEWICZ APPLICANTS AND
PERSONAL INJURIES ASSESSMENT BOARD RESPONDENT JUDGMENT of Mr. Justice Ryan, delivered on the 19th day of October, 2010 1. These are two applications for judicial review of decisions made by the respondent Board about solicitors’ fees. In the case of the first applicant, Mr. Plewa, the Board refused to include in its assessment any of the fees claimed by the applicant for legal advice and in the case of the second applicant, Mr. Giniewicz, the sum allowed was 40% of the legal fees claimed. The applicants claim that the Board acted unreasonably and in breach of its obligations under the Personal Injuries Assessment Board Act 2003, as amended. Leave was granted by Peart and MacMenamin JJ. by orders of the 13th October and 8th December, 2008 respectively.
The Personal Injuries Assessment Board 3. An application to the Board has two possible outcomes. The first is that the Board does not proceed to make an assessment, or that the assessment is not accepted by one or other relevant party; in that case, the Board gives a certificate enabling the claimant to proceed in court. The second outcome is that the matter is disposed of by the payment by the defendant to the claimant of the sum assessed by the Board. One potential consequence should be noted. If a claimant rejects an assessment which the defendant has accepted, and if the case proceeds to court and the claimant recovers less in damages than the amount of the Board's assessment, the claimant may be penalised in costs pursuant to s. 51A of the Act of 2003, as inserted by the Personal Injuries Assessment Board (Amendment) Act 2007. The situation, in other words, is much the same as that which arises where a plaintiff has not accepted a lodgement paid into court in satisfaction of a claim but, after proceeding with the action, is not awarded more than the amount paid into Court. Background Facts 5. The applicants separately engaged the same firm of solicitors which conducted their business with the respondent Board on their behalf. The firm had contacts with the Polish community in Ireland and had on its staff a Polish legal executive who, in addition to his legal duties, acted as translator and interpreter for the applicants. The solicitors billed the applicant in each case for translation services and those costs were claimed as expenses that were “reasonably and necessarily” incurred pursuant to s. 44 of the Act of 2003. The process in each case resulted in an assessment by the Board which was accepted by the defendants. In both cases, the assessment included some of the expenses claimed including the costs of the application, a medical report and the translation services. However, in the case of Mr. Plewa, the Board awarded none of the legal fees claimed and in the case of Mr. Giniewicz it awarded just 40% of the legal fees claimed. Mr. Plewa’s Case 7. The solicitors furnished the completed Schedule of Special Damages to the Board in November, 2007 accompanied by a standard form covering letter intended for use in any case that goes to the Board. The letter states that legal fees have been reasonably and necessarily incurred by the applicant within the meaning of s. 44 of the 2003 Act and then sets out seven boxes to be ticked as appropriate. The following four boxes were ticked in the case of Mr. Plewa:-
• The Claimant has limited / no understanding of the English language; • The Claimant does not have any knowledge of the Law of Torts within this jurisdiction; and • The Claimant does not have a Law Degree and is not a qualified Barrister or Solicitor with particular expertise in the areas of personal injury litigation and the assessment of quantum for general damages in relation thereto.
• The Claimant suffers from limited cognitive function and has difficulty in complying with the provisions of Part 2 of the PIAB Act and dealing with all matters arising therefrom and relies entirely upon the professional legal advice of his / her Solicitors; and • The Claimant is a minor.
• Cost of Medical Report submitted with Application - 325.00 • Legal Advice Fee (including VAT) - € 2420.00 • Translation and Interpreting Fee - € 350.00 11. After a number of reminders from the Board, the solicitors also furnished a letter from Mr. Plewa’s employer with a completed Loss of Earnings certificate in May, 2008. 12. The Board issued a notice of assessment in Mr. Plewa’s case by letter dated the 24th July, 2008. A substantial amount was awarded for general and special damages and €725 for fees and expenses, allocated as follows:-
(2) Medical Fee - € 325.00 (3) Translation Fees - € 350.00
15. On the 7th August, 2008 the Board replied, stating:-
Mr. Giniewicz’s Case 18. The solicitors furnished the completed Schedule of Special Damages in July, 2008. The same standard form covering letter was used as in Mr. Plewa’s case and the same four of the seven standard reasons were ticked (see paragraphs 7 and 8 above). The attached Schedule of Special Damages was as follows:-
• Cost of Medical Report submitted with Application - € 350 • Translation Fee - € 350 • Legal Fee (including VAT) - € 1,331 • A&E Invoice - first visit - € 60
• Advising the client as to whether he had a case; • Identifying the wrongdoer(s) concerned; • Taking instructions in relation to the nature of the injuries sustained and identifying all relevant doctors’ and medical evidence; • Issuing the appropriate letters of claim and complying with the provisions of the Civil Liability and Courts Act 2004; • Preparing Form A application to the Board and complying with the Act of 2003 and all regulations made thereunder; • Complying with all reasonable requirements of the Board and any enquiries or queries which they had made; • Completing Schedule of Special Damages and gathering together all necessary documentation for submission to the Board including particulars of loss of earnings; and • Receiving an Assessment from the Board and advising the applicant as to the adequacy of the Assessment. 21. By letter dated the 21st October, 2008 the Board notified its assessment in the case, awarding a certain amount for general and special damages plus €1,234 towards the following fees and expenses reasonably and necessarily incurred:
(2) Medical Fees - € 350.00 (3) Legal Fee (including VAT) - € 484.00 (4) Translation Fees - € 350.00 22. By way of explanation for this award, Mr. Priestly avers as follows:
27. In each case Mr. Priestly swore a second affidavit on the 10th December, 2009; those affidavits are in essentially the same terms. In those affidavits, Mr. Priestly set out the content of guidelines drafted in 2007 on the subject of legal costs and modified by the Board in December, 2007 and he explained that in 2008 further guidance was given to the assessors on the issue of legal costs and additionally following the decision of the Supreme Court in the O’Brien case that is considered below. In 2009 a document in relation to the guidelines was published on the Board’s website; that document is exhibited in the proceedings and sets out the general policy applied by the Board.
The Oireachtas Committee Meeting
The Issues in the Case 31. The Board denies that judicial review applies in the circumstances of this case because it complied with all its legal obligations under the legislation and it did so in a manner that is consistent with fair procedures. The application for legal fees was considered by the Board according to its normal system which was to have an assessor look into the claim for expenses and make a recommendation in a procedure that was fair and reasonable in the circumstances. It is not a matter for this Court to decide whether the assessments of legal fees were correct but rather to look at the process as a whole and then to decide on the legality and fairness. There was material on which the Board could and did reasonably reach its conclusions and therefore the matter is not open to judicial review. 32. The Board argues that even if the matter is appropriate for detailed examination by the Court, then its decisions satisfied the requirements of fairness and reasonableness. The function of the Board under the legislation is to exercise a discretion and that is what it did in these cases. There can be no basis for suggesting that there should be an award for legal costs in all cases and that is, in effect, what is being claimed here. The Act of 2003 requires the Board to make decisions. Decisions will inevitably be different in different cases. It is, of course, for the Board and the Board alone, with the assistance of its own assessors, to make the judgment as to what is reasonably and necessarily incurred in the way of expenses in an individual case. Finally, the contentions made in relation to the Oireachtas Committee presentation are fundamentally misplaced and the applicants rely on selected extracts out of context.
The PIAB Legislation
(2) Subsection (1) shall not be read as requiring any procedure to be followed by the Board or hearing to be conducted by it that would be required to be followed or conducted by a court were the relevant claim concerned to be the subject of proceedings.”
(2) Those things are (a) to advise the claimant or respondent, as appropriate, of the desirability of his or her obtaining legal advice in the matter, (b) to provide an explanation to the claimant or the respondent of the legal consequences generally a failure to complete properly the step concerned or to follow properly the procedures generally under this Act may have in respect of a claimant’s or respondent’s rights or obligations as regards a relevant claim, (c) to provide such assistance as the Board considers reasonable to the claimant or the respondent, as appropriate, in completing the step concerned properly or; as the case may be, re-taking that step in a proper manner. [...]”
(a) a next friend or, as appropriate, a guardian of the claimant or the respondent, (or, as the case may be, any one or more of 2 or more respondents) who is a minor or a person of unsound mind is acting on behalf of the claimant or that respondent or those respondents in the matter, or (b) a committee of the claimant or the respondent (or, as the case may be, any one or more of 2 or more respondents) who is a person of unsound mind is acting on behalf of the claimant or that respondent or those respondents in the matter, the notice referred to in subsection (1) shall also include a direction to the next friend, guardian or committee that he or she or it obtain legal advice from a person who is independent of him or her or it as to whether the assessment ought to be accepted.”
(2) That statement (“the statement’) is one to the effect that the Board will direct that the respondent or respondents who accept or are deemed to have accepted the assessment shall pay to the claimant, in addition to the amount of the assessment, a specified amount, being the whole or part, as the Board, in its discretion, determines, of the amount of the following fees or expenses of the claimant. (3) Those fees or expenses are fees or expenses that, in the opinion of the Board, have been reasonably and necessarily incurred by the claimant in complying with the provisions of this Part or any rules under section 46 in relation to his or her relevant claim. (4) If the assessment is accepted or deemed to be accepted, in accordance with this Part, by the claimant and the respondent or one or more of the respondents the Board shall direct that that respondent or those respondents shall pay to the claimant the amount specified in the statement. […]” 37. Both sides relied on the case of O’Brien v. Personal Injuries Assessment Board [2009] 3 IR 243 in support of their positions and it is convenient to refer to it here. In that case the applicant’s solicitors furnished the Board with an authorisation requesting the Board to correspond with the applicant solely through his solicitors. However, the Board corresponded directly with the claimant and copied such correspondence to the claimant’s solicitor. The applicant challenged the Board’s policy by way of judicial review. The Board argued that the policy was necessary and expedient to its functions as it reduced legal costs and increased efficiency. MacMenamin J. in the High Court granted a declaration that in adopting this policy, the Board acted in breach of the Act of 2003 and had not demonstrated how its interference with the lawyer / client relationship was necessary, expedient or incidental to its functions. 38. On appeal, the Supreme Court affirmed the findings of the High Court. Denham J. found that it could not be inferred from the Act of 2003 or presumed that the Oireachtas intended to exclude lawyers acting for claimants at PIAB. She stressed that the PIAB process has serious consequences for a claimant and she concluded (at p. 261):-
General Principles
• The Court cannot substitute its opinion for that of the decision-maker because it would have reached a different conclusion to the decision-maker (see e.g. O’Keeffe v. An Bord Pleanála [1993] 1 I.R. 93; Meadows v. The Minister for Justice, Equality and Law Reform (Unreported, Supreme Court, 21st January, 2010)). • There is limited scope to interfere with the exercise of discretion by an administrative body (see e.g. Keegan v. Stardust Victims’ Compensation Tribunal [1986] I.R. 642; O’Keeffe v. An Bord Pleanála [1993] 1 I.R. 93). • The decisions of administrative bodies to which the legislature has entrusted decisions which require the deployment of knowledge and expertise available to it are afforded particular deference in the context of judicial review applications (see e.g. Ryanair v. Flynn [2000] 3 IR 240; Meadows v. The Minister for Justice, Equality and Law Reform (Unreported, Supreme Court, 21 St January, 2010)).
• Fennelly J. in McCarron v. Kearney (Unreported, Supreme Court, 11th May, 2010) held as follows in relation to the exercise of discretion “[I]t would be wrong to preclude a decision-maker from formulating guidelines by reference to which he makes it clear that he will make his decisions. It would be inimical to good administration. and to consistency in decision-making to oblige all decision-makers to treat each decision entirely on its own, without reference to previous decisions or to criteria designed to serve the public interest.”
Analysis Exercise of Discretion 46. The applicants contend that in refusing to award the legal fees claimed, the Board applied a blanket policy of treating legal fees differently to medical and other expenses. They say it was inconsistent for the Board to allow the medical and translation fees claimed in full and without query but to disallow the full amount of the legal fees claimed. 47. Section 44 of the Act of 2003 does not confer an entitlement to legal costs in all cases and claims to such costs require consideration by the Board on a case by case basis. As was held by Macken J. in O’Brien, the Act was enacted “with a view to reducing the costs, in particular legal and other professional costs, associated with the resolution of such personal injuries claims by means of court proceedings” and is “intended to provide a mechanism for resolving civil actions for personal injuries, without the costs involved in court proceedings.” If the Board decided to award legal fees in every case, without inquiry as to the reasonableness or necessity of those fees for the purpose of complying, that would be an abrogation of its obligations under the Act. 48. In the case of Mr. Giniewicz, the assessors decided that one element of the claim did reasonably and necessarily require legal advice and so they allowed part of the costs claimed. In the case of Mr. Plewa they decided that none of the legal fees claimed were necessarily and reasonably required. It is true that the affidavit evidence provided as to how the claims were assessed and the awards made by the Board was in fairly general terms and no mode of calculation of the precise amount is set out. On the other hand, the affidavits do provide the essential information as to why only part of the costs was allowed. In each case the Board considered the application for an assessment by reference to the supporting documents submitted. It did so in its usual way using assessors appointed for that purpose. It came to a decision as to the reasonableness and necessity of the fees claimed; based on the information before it. 49. There is nothing wrong with the Board setting out a policy in relation to legal fees. In fact, the fixing of a general policy would appear to be a prudent method of ensuring fairness, certainty and consistency in decision-making. The policy of the Board in relation to legal fees (as set out in the affidavits of Mr. Priestly) was neither unyielding nor inflexible, each case being considered by the assessors on its individual merits. There is no evidence that the Board’s policy disabled it from awarding legal fees that were considered to have been incurred reasonably and necessarily for the purpose of complying with Part 2 of the Act. The evolution of the policy displays a degree of flexibility in response to changing circumstances. It cannot be said that the Board imposed so rigid a policy as to have unlawfully fettered its discretion. Nor can the policy be condemned as unfair or irrational. 50. I cannot find any evidence that the Board unlawfully fettered its discretion, acted in an improper way in the exercise of its discretion or failed to fulfil its functions properly under s. 44 of the Act. Duty to Give Reasons 52. The solicitors submitted to the Board that the legal fees were reasonably and necessarily incurred because the applicants were foreign nationals, had limited knowledge of the English language, did not have any knowledge of the law of torts in Ireland, did not have law degrees and were not qualified barristers or solicitors with expertise in the area of personal injury litigation and the assessment of quantum. 53. A person does not need to have detailed information about the legal system in order to make a claim to the Board. As was noted by the respondents, the great majority of persons making applications for compensation to the Board would not have any knowledge of tort law or personal injuries litigation in this jurisdiction; they would not have law degrees and they would not be qualified barristers or solicitor with particular expertise in personal injuries litigation. If every such person is entitled to the costs of legal advice it would mean that it is reasonable and necessary for every non-lawyer applying to the Board to get unnecessary information and to have the other party ordered to pay for it. That is not supported by the scheme of the Act of or the judgment of the Supreme Court in O’Brien. Indeed, it would seem to run counter to s. 29, which envisages that the Board may advise a claimant or a respondent of the desirability of his or her obtaining legal advice in particular circumstances. 54. I find the solicitors’ submissions as to the difficulties posed by the applicants’ nationality to be equally unimpressive. The nationality of an applicant would appear to have relevance only in relation to potential language difficulties, which in this case were remedied by the provision of translation and interpretation services at the cost of € 350 each, for which the Board ordered the defendants to reimburse both applicants in full. I cannot see how the applicants’ nationality / language difficulties could have further impact in terms of justifying the legal fees claimed. They were therefore in a similar position to any competent, adult English-speaking claimant. They were at no geographical disadvantage as they were in Ireland throughout the claims process. 55. The Act protects a vulnerable person (e.g. a minor or person with disability) or one who is incapable of appreciating the consequences of accepting or rejecting an assessment by mandating the Board to direct or recommend independent legal advice. However, the applicants in these cases were not in a vulnerable condition by reason only of their Polish nationality. 56. The applicants’ complaint that the Board failed to take account of their language difficulties is accordingly without substance. 57. The claims made by the applicants in these cases were straightforward and were the kind of claims intended to be dealt with by the Board and thereby diverted from the courts’ burgeoning caseloads. The only matter which could be described as being “complex” at any level was the identification of the correct defendant in the case of Mr. Giniewicz. 58. It was the function of the Board to decide what it considered was reasonable and necessary. It was not for the solicitors to generate the expense and for the Board to show why it should not have been incurred. The solicitors had to make the case as to necessity and reasonableness for the Board to consider. In the circumstances, the examination by the Board and its assessors was necessarily general and the reasons for the decisions could only be expressed in rather general terms. 59. Ultimately, it seems to me that although the reasons given were quite general, the applicants were not in any doubt as to why their legal fees were rejected. Reasonableness 61. No itemised bill was provided by the solicitors in either case and the reasons given for the fee claimed in the case of Mr. Giniewicz (as set out at para. 19 above) were general and non-specific. Thus, no clear explanation was given for the fees. Even after the fees were refused (in whole and in part respectively), the solicitors did not furnish any information to the Board as to how the sum claimed in each case was calculated or what particular work was undertaken or how long it took or by whom it was done. 62. If costs go to taxation, the Taxing Master has to take into account the work done, the time taken and the level of expertise of the person who did it. It is fundamental to ask in respect of an account for any service what work was done and how long it took to do it. It is worth noting that s. 68 of the Solicitors (Amendment) Act 1994 requires a solicitor to provide his client, on the taking of instructions, with particulars in writing of his charges or an estimate of the charges or, where that is not practicable, the basis on which the charges are to be made. This essential information, which is required by law to be given to the client, was not furnished by the solicitors to the Board when they made the claim for costs. The applicants have exhibited a letter from the solicitors to the Board, assuring the latter somewhat dismissively that they had complied with the requirements of s. 68. However, the particulars provided to the applicants under s. 68 were not exhibited in the proceedings. 63. In O’Brien, Macken J. held that it may be reasonable and prudent for a claimant to engage a solicitor “in an appropriate case”. Both Denham and Macken JJ. stressed that the right to legal representation in the PIAB process is subject to the caveat that an applicant has no absolute entitlement to recover the costs of such representation. Denham J. went so far as to state that “A claimant cannot recover his costs for legal representation at PIAB.” Although it was not in issue in that case, the Supreme Court did not find the legal costs limitation to present any difficulties for the constitutionally-protected right to legal representation or the principle of equality of arms. Thus, the applicants have incorrectly interpreted O’Brien insofar as they rely upon that decision as authority for the contention that they are entitled as of right to fees for legal advice in relation to the PIAB process. 64. In all the circumstances, I do not find that there was any improper exercise of discretion by the Board or failure to comply with the legislation. I do not find that there was a failure to give reasons or irrationality, unreasonableness or other defect in the Board’s decisions. Objective Bias 66. In this case the reasonable observer’s presumed knowledge includes the legislation under which the Board operates, the facts of the particular applications that were made by the solicitors on behalf of the applicants and the legal issues then awaiting resolution in the decision of the Supreme Court in O’Brien’s case. 67. The applicants contend that the statements made by the Chairperson and Chief Executive to the Oireachtas Committee on 15th October, 2008 exhibit an attitude on the part of the Board that solicitors had no role in its process; that doctors give all relevant advice; that there are no legal issues and that it is not a situation for legal fees to be earned, and that the appropriate person to advise about the acceptance or rejection of an assessment by the Board is a doctor. It is argued that the extracts demonstrates bias, prejudice, hostility and dislike against the involvement of solicitors acting in respect of applicants to the Board and against the award of reasonable legal fees arising from such representation. 68. This matter was addressed in the affidavit evidence of Ms. Byron, the Chief Executive Officer of the Board. The affidavits of Mr. Priestly are also relevant in so far as they describe how these applications were handled. No application was made to cross-examine the deponents. I think it is clear from this evidence that the applicants’ interpretation of the Oireachtas Committee statements is unjustified. 69. Even if they are considered independently, without reference to the affidavits, the statements made by the officers of the Board do not in my view bear the meanings the applicants attribute to them. It is true that a small part of the transcripts if taken alone and read literally gives some comfort to the applicants’ argument but a fair and reasonable reading of the exchanges as a whole does not support a case of bias. The statements made by the Chairperson and Chief Executive suggest that compensation is determined by reference to medical information rather than on the basis of an oral hearing in respect of disputed matters including legal issues such as liability. There are many straightforward cases and the mere fact that a solicitor is retained does not necessarily mean that the solicitor’s fees will have been reasonably and necessarily incurred for the purposes of s. 44 of the Act of 2003. However, the Board members did not express the position that legal advice is never required or that no award is ever made in respect of legal fees. No informed observer would reasonably infer objective bias from the transcript of the Oireachtas Committee meeting. 70. The suggested reading of the Oireachtas proceedings would be contrary to the terms of the Acts, as an informed reasonable person would be aware. 71. In, my view, the allowance in Mr. Giniewicz’s case of a proportion of the fees claimed and the reason provided for that decision would appear to negate any absolute policy not to allow legal fees. The circumstances in which the decisions were made also point to the same conclusion. The Board assessed the claims by reference to the documents submitted in support. It did so in its usual way using assessors appointed for that purpose. 72. In the circumstances I am satisfied that the applicants have not established objective bias. Conclusion
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