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Legal fees a couple owe following a court case over injuries caused by their Rottweilers will be included among their debts in a personal insolvency arrangement (PIA).
Mr Justice Alexander Owens on Monday dismissed an appeal from the injured woman against inclusion of the €77,000 legal fees in the PIA.
It relates to a debt arising out of a 2018 High Court action when Mary and Michael Daly were ordered to pay €179,000 damages plus €77,000 legal costs to Mae Rae after the Dalys’ two Rottweilers attacked and bit her.
The incident occurred when Ms Rae was near the Dalys’ property in Co Cork and the two dogs escaped from their pen on July 15th, 2012.
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Ms Rae, of Gurrane South, Donoughmore, Co Cork, suffered several severe bite injuries, had to be rescued by another person and was hospitalised for 11 days following the dog attack.
Liability was admitted in the case, and the dogs were put down shortly after the incident.
The Dalys have not paid the award.
On Monday, the High Court heard the Dalys, of Ballycraheen, Vicarstown, Co Cork, claim they are insolvent and want to enter the personal insolvency process.
After obtaining the services of personal insolvency practitioner Alan McGee, the couple was granted protective certificates by Cork Circuit Court last year.
The certificates remain in place pending the outcome of the PIA process.
As part of their applications, the Dalys’ practitioner included the legal fees awarded against them in the High Court but not the damages award to Ms Rae.
That means the legal fees will be dealt with in the same manner as Mr Daly’s other debts.
Under the 2012 Personal Insolvency Act, debts due from a personal injuries damages award from a court are specifically excluded from PIAs.
However, Ms Rae, represented by Gerard Nicholas Murphy BL, instructed by Harry McCullagh Solicitors, objected to the inclusion of the legal fees in the PIA and appealed that decision to the High Court.
The legal fees should be treated in the same manner as the damages award, it was claimed. The inclusion of the fees was prejudicial to Ms Rae’s attempts to obtain the judgment, it was submitted.
Mr McGee, represented by Keith Rooney BL and solicitor Eugene Carley, disputed Ms Rae’s arguments and argued the legal fees should be included in the proposed PIAs.
After considering the legal submissions from both parties, Mr Justice Owens said that the legislation on what type of debts can be included in a proposed PIA is quite clear, and dismissed the appeal.
He agreed with submissions from Mr Rooney that the legal fees arising out of the 2018 proceedings can be included as a debt in Mr Daly’s proposed PIA.
The judge also said he was making no order in respect of the legal costs incurred by the parties in the application before him.
The applications to approve the Dalys PIAs will go before the Circuit Court at a later date.