Barrister to pay €200,000 to settle dispute

A barrister has agreed to pay €200,000, including costs, as part of the terms of settlement of a two-year dispute over a Dublin city centre premises, the High Court was told yesterday.

Barrister Patrick Russell, who was threatened with jail by Mr Justice Peter Kelly earlier this year over his failure to meet contractual obligations concerning premises at Unit 7, Inns Court, Dublin, yesterday settled proceedings brought against him by legal costs accountant Paul Behan.

Mr Justice Kelly said he was glad the parties had been able to reach agreement. However, the judge added, it was a "great pity" Mr Russell had not adopted this approach at a much earlier stage as he would have saved himself much trouble, court orders and a great deal of difficulty.

The case was before Mr Justice Kelly for a hearing to decide the amount of damages to be paid to Mr Behan arising from Mr Russell's failures. However, after talks between the sides, the judge was told by Paul Coughlan, for Mr Behan, that the matter had been resolved on written terms which the court was being asked to receive and file.

The terms include that Mr Russell, Steelstown, Rathcoole, Co Dublin, pay Mr Behan €200,000, including costs, with a stay on that order for judgment until March 31st, 2008. The sum is to be paid from the proceeds of sale of a property - Hill of Downs, Clonard, Co Meath - owned by Mr Russell. That property is to be put up for sale in January and has been charged in the sum of €200,000.

The terms also provide that, following expiration of the stay on judgment, there is nothing to prevent Mr Behan seeking to enforce judgment.

Under the settlement, the judge also lifted court orders made earlier this year requiring Mr Russell to pay amounts of some €134,000 to Mr Behan. Orders that Mr Russell should pay the costs of various court appearances were also discharged.

The judge was also told the terms noted that Mr Russell has given Mr Behan's solicitors a bank draft for €40,000. If that draft clears, the amount will be deducted from the judgment sum due.

Last March, the High Court made orders requiring Mr Russell to meet, within 14 days, obligations under a contract of July 2005 for the €1.3 million sale of the Inns Court property and to pay additional sums of €75,000 interest and €58,817 in arrears of rent, rates and insurance.

Mr Behan later brought proceedings alleging contempt of those orders by Mr Russell. On July 20th last, Mr Justice Kelly ordered the imprisonment of Mr Russell after finding he had failed to meet his contractual obligations or orders of the court.

Apart from a deposit of €130,000 and rent payments of €50,000, Mr Russell had failed to pay the money due, the judge said.

However, the judge lifted the committal order some hours after it was made because Mr Russell outlined details of arrangements with the Irish Nationwide Building Society under which he hoped to secure funds of some €1.65 million to be used to meet his obligations to Mr Behan.

Some days later, counsel for Mr Behan said he had no confidence that the sale would complete and the judge ruled Mr Behan was entitled to vacant possession of the premises. It was confirmed to the court on July 31st last that Mr Russell had quit occupation of the premises and Mr Behan was in possession.