Martin wins €1.5m judgment

The Catholic Archbishop of Dublin, Dr Diarmuid Martin, has secured summary judgment for some €1.5 million on consent against a Dublin solicitor over his admitted misappropriation of that amount after it was bequeathed by a deceased lawyer to the church for charitable purposes.

In granting judgment to Dr Martin at the Commercial Court today against Ruairi O'Ceallaigh, Mr Justice Peter Kelly said the case involved "unalloyed dishonesty of an unattractive type".

The court heard Dr Martin had received some €155,000 from the estate of the late Donal O'Suilleabhain from the firm Sean O'Ceallaigh & Co Solicitors but only realised a further €1.5 million was due to the church after media reports last August of Law Society proceedings against the firm.

The €1.5 million due under the will of Mr O'Suilleabhain, Our Lady's Manor, Bulloch Harbour, Dalkey, was misappropriated by Ruairi O'Ceallaigh, a partner in the firm said to have a gambling problem, and used by him towards buying and refurbishing properties at Grand Canal Street and Cabra Park, Dublin.

As various financial institutions have claims over those properties, there is an issue about the ranking of the Archbishop's claim to those properties and his capacity to recover the sums due, Declan McGrath, for Dr Martin, said.

In those circumstances, it might be "a futile exercise" to pursue claims the properties were held on constructive trust for the Archbishop, counsel added.

The late Mr O'Suilleabhain was "clearly a charitable man very much attached to his church" and this was a case of "unalloyed dishonesty of an unattractive type" particularly as the monies were intended for charitable purposes and the matter involved solicitors in a position of trust and with duties under law, Mr Justice Peter Kelly said.

When that solicitor-client relationship was subject "to this sort of treachery", it gives rise to "very great concerns", the judge added.

Dr Martin has brought proceedings against Cormac O'Ceallaigh, Ballyteige House, Rathdrum, Co Wicklow, and Ruairi O'Ceallaigh, Grand Canal Street, Dublin, - formerly practising as Sean O'Ceallaigh & Co Solicitors, Phibsboro, Dublin - arising from the misappropriation.

Today, Mr McGrath said there was no allegation Cormac O'Ceallaigh was involved in the misappropriation. Mr O'Ceallaigh was being sued as a partner in the firm and it was contended he had a liability to Archbishop Martin, as a client, for the wrongful actions of his partner, counsel said. It was alleged Mr O'Ceallaigh was negligent in his capacity as executor of Mr O'Suilleabhain's estate and owed a duty of care to the beneficiaries of the estate.

The court heard Mr O'Suilleabhain died in July 2006 and left €1.7 million in his will of June 1997. He left various bequests, including some IR16,000 to various relatives. Most bequests were to church groups and charities, including a bequest of €75,000 in favour of the Archbishop of Dublin to be applied for the charitable purposes of the SHARE diocesan fund and for other charitable purposes as selected by the Archbishop.

The will left the residue of the estate, valued at some €1.5 million, to the Archbishop to be applied by him for the same charitable purposes.

In October 2007, the Archbishop received a cheque for €95,230 from the O'Ceallaigh firm and a letter informing him further funds would be sent on completion of the administration of the estate. In June 2010, the Archbishop received a letter from Ruairi O'Ceallaigh enclosing another cheque for €50,188 and a legacy receipt describing that amount as "the full payment" of the legacy due.

The representations in that letter were false as a further sum of €1,551,336 was payable, the Archbishop said. He alleged deceit and/or fraudulent misrepresentation by Ruairi O'Ceallaigh.

Mr Justice Kelly transferred the proceedings against both solicitors to the Commercial Court and was told Ruairi O'Ceallaigh was consenting to summary judgment and had also apologised for his actions.

The judge entered summary judgment against Ruairi O'Ceallaigh in the sum of €1,551,336, plus interest and costs.

Suzanne Boylan, for Cormac O'Ceallaigh, said her client was "entirely innocent of any dishonesty" and wanted time to address issues related to securing an indemnity from the Solicitors Mutual Defence Fund. Mr McGrath said the adjournment may be in the Archbishop's interest and he was not objecting to it.

Mr Justice Kelly agreed to adjourn the matter for four weeks to ascertain the SMDF position. He also adjourned generally the issue of whether to pursue claims against the properties at Grand Canal Street and Cabra Park.

Last October, the High Court ordered the winding up of the firm after Ruairi O'Ceallaigh used almost €2.5m of client monies to gamble on stocks and shares.

The President of the High Court, Mr Justice Nicholas Kearns, said there was a "very serious fraud" involved and directed the papers in the case be referred to the DPP. The court heard the firm's total liabilities could be almost €6 million.