Solicitors fined €100,000 for overcharging

FINES OF €25,000 imposed on two solicitors for professional misconduct arising from overcharging were increased fourfold yesterday to €100,000 each after the president of the High Court said he wanted to send out a message that dishonesty would not be tolerated in the legal profession.

Mr Justice Richard Johnson also prohibited solicitors Michael McDarby and Seán Acton, of Michael McDarby and Co in Ballinrobe, Co Mayo, from practising on their own for the next two years.

He expressed surprise the Law Society had not itself appealed against the original fines - imposed by the Solicitors Disciplinary Tribunal (SDT) - given the two had "demonstrated a capacity for dishonesty that I find quite startling".

Earlier this year, the two were fined €25,000 each by the SDT for charging a 10 per cent levy in personal injuries actions - despite having had their costs already covered by the insurance companies.

The case came before Mr Justice Johnson last month who described the fines as "derisory" and he adjourned the issue as to what penalty should be imposed on the solicitors to yesterday.

Paul Anthony McDermott, for the Law Society, told the court yesterday the overcharging involved setting up a bank account so the firm could "trade off the books". When settlements were paid into this account, two payments were made out - one to the client and one to the solicitor firm.

Mr McDermott said the Law Society's investigating accountant reported he had never before seen "a system so sophisticated" which was designed to mislead anyone looking at their books.

Mr Justice Johnson said the word was not "mislead". The "word you are looking for is lie", he told counsel.

The judge said: "I want it to go forward from this court that dishonesty has got to be stopped. It is not to be tolerated. I recognise that, in other forums, we are not shocked by dishonesty and, at times, one may come to the conclusion that it is a way of life, but I would try to stop it here."

The judge suggested last month striking off the two solicitors may be the appropriate penalty and yesterday said he had considered suspending them for two years.

However, after hearing submissions from counsel for the solicitors, he ordered they only practise for the next two years within the practice of another qualified solicitor. He also increased the fines to €100,000 each and directed them to pay the Law Society's costs.

In appealing for leniency, counsel for the two solicitors said they fully accepted what they did was completely unprofessional. They apologised to the public, their colleagues, the Law Society and the court.

Mr Justice Johnson rejected a suggestion by counsel that nobody was out of pocket as a result of what they had done. He said the Revenue Commissioners were out of pocket from the untaxed solicitor/client fees involved in this. "The Revenue - that is you and me," the judge said.

The Law Society had brought the penalties imposed by the SDT - an independent tribunal to regulate solicitors - to Mr Justice Johnson to either confirm, reject or vary them.