THE PRESIDENT of the High Court has approved a Central Bank application to reduce from €423 to €375 the hourly fee charged by a special manager appointed to manage the business of Newbridge Credit Union.
The cut comes into effect on Monday.
The bank and special manager Luke Charleton both disputed as “inaccurate” claims by counsel for the credit union’s supervisory committee that costs of €750,000 had been incurred since January 13th last, when the special management order was granted.
Additional claims by Bernard Dunleavy, for the committee, that Mr Charleton, a chartered accountant with Ernst Young, was mainly replicating work carried out by accountants Grant Thornton for the bank before the order being made, were rejected.
In approving the fee reductions as “a constructive development” yesterday, Mr Justice Nicholas Kearns stressed that when appointing Mr Charleton on January 13th, he had made it clear that the matter of fees would be subject to regular review.
The members and depositors of the credit union “need have no fear that unrealistic fees will be approved”, he said.
The lower fees corresponded to standard court-approved fees in such situations, he added.
Mr Charleton’s fee will now be €375 an hour, with corresponding reductions for his staff of €375 for partners (down from €423); €300 for directors (from €339); €247 for senior managers (€279); €191 for managers (€216) and €135 for senior assistants (€150).
The proceedings were before the judge only for the purpose of the bank’s application to reduce fees. Paul Gallagher SC, for the bank, stressed it was “business as usual” at the credit union.
Mr Gallagher said Mr Charleton had done “extensive work” helping to resolve the difficulties at the credit union. The court heard the bank believed it would facilitate the reorganisation of the credit union, which has 37,000 members, and restore its financial position.
The application was the first of its kind under the Central Bank and Credit Institutions (Resolution) Act 2011.
In correspondence read to the court, the board of the credit union disputed any need to appoint a special manager, said it failed to see how there could be the alleged uncertainty over the credit union’s financial position and added that it had put measures in place to address the situation.
