A rare insight into the fees being paid to barristers and solicitors in High Court cases has been provided in open court to a High Court judge.
Mr Justice Michael Twomey, in a judgment this week, said it is “rare”, in open court, to get to see exactly what is meant by what he described as “millionaire” costs in euro and cent terms.
In the breach of contract case before him, this happened because the rates of pay for the lawyers were ventilated in open court via two reports from legal costs experts.
The reports by legal costs accountants Behan & Associates and Cyril O’Neill set out some detail of likely charges, based on rates followed by Legal Costs Adjudicators, for brief fees, consultations, drafting and other work involved.
The overall estimated costs, VAT inclusive, including for preparatory work for the case, costs adjudication, ranged from almost €500,000 to €937,186 for one side, the defence, dependent on factors including whether the trial ran for about eight or 16 days.
The solicitor’s overall professional fee was estimated between €167,500 and €385,000, excluding VAT at 23 per cent.
The overall estimated fees for senior counsel ranged between €121,000 and €174,000, excluding VAT. Those included brief fees estimated between €60,000 to €80,000 and daily refresher rates up to €4,500.
The estimated costs indicated the losing party in the case could face an overall bill of between €1 million and €2 million, the judge noted.
His judgment set out a company’s provisional estimate placing costs of discovery for the case up to €570,000. That estimate was associated with a linear review of a preliminary estimate of 100,000 documents based on information available at the time of the costs estimate.
The case at issue is by Connective Energy Holdings Ltd against Energia Group ROI Holdings DAC.
[ Judge criticises ‘millionaire’ legal costs rates in High CourtOpens in new window ]
In a pre-trial application, Energia applied to have Connective pay into court €937,186 as security for Energia’s legal costs. Connective argued the appropriate sum was under €500,000. The judge concluded the appropriate level of security was €450,000.
Judges, he said, have no control over legal costs rates. The solicitors and barristers in the case had not sought the costs which were based on expert views on the current going rate, set by the Oireachtas, for lawyers’ fees in the High Court, he added.
In their costs report for Energia, Behans estimated the total costs excluding VAT, based on a trial Energia expected would last 16 days, at €761,940.
The solicitor’s overall professional fee was estimated at €385,000, including €10,000 for fees incurred from when the case was initiated in March 2023.
Senior counsel’s overall fees were estimated at €174,000. This included, inter alia, an €80,000 brief fee; €67,500 refresher fees (€4,500 daily for 15 days); €2,500 for taking the court’s judgment and making a costs application; and €4,500 for substantive written submissions. Junior counsel’s overall fees were estimated at €121,000, including a €55,000 brief fee and €45,000 refresher fees (€3,000 daily over 15 court days) and €3,000 for written submissions. Legal costs adjudication fees were estimated at €56,440.
In his costs report for Connective, Cyril O’Neill estimated the total costs, based on a 7½-day trial and VAT exclusive, at some €361,000.
The solicitors’ professional fees were estimated at €167,500.
Senior counsel’s fees were estimated at between €104,250 and €119,250, including a brief fee of between €60,000 and €75,000; €24,000 refresher fees based on six days in court at €4,000 daily; €4,000 for substantive written submissions and €2,500 for taking judgment/costs applications.
Junior counsel’s overall fee was estimated at €73,169 up to €93,169 including a brief fee ranging from €40,000 to €60,000; €16,002 refresher fees based on six days in court at €2,667 daily; and some €3,000 for written submissions concerning security for costs.
At a glance: The cost of a High Court case
Estimated fees for defence in 16-day trial:
Solicitor fee: €385,000;
Senior counsel: €174,000;
- Includes daily refresher fee of €4,500
Junior counsel: €121,000;
- Includes daily refresher fee of €3,000
Estimated fees for litigant in 7½-day trial:
Solicitor fee: €167,500;
Senior counsel: €104,250-€119,250;
- Includes daily refresher fee of €4,000
Junior counsel: €73,169-€93,169;
- Includes daily refresher fee of €2,667
Estimated legal bill for losing party in case: Between €1 million and €2 million.
* Costs for defence (Energia) and litigant (Connective Ltd) estimated by legal cost accountants for the High Court.
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