A High Court decision yesterday means two directors of Joseph Murphy Structural Engineers Ltd (JMSE) are facing substantial legal costs arising from the planning tribunal's finding that they obstructed it.
Because of the findings of hindrance and obstruction, the tribunal in November 2004 refused to grant Joseph Murphy jnr, Frank Reynolds and JMSE their costs for participating in the tribunal over 163 days.
In proceedings before Mr Justice Thomas Smyth, the JMSE applicants later challenged the findings of hindrance and obstruction and also challenged the tribunal's refusal of their legal costs.
However, in a reserved judgment yesterday, they lost on all grounds. Subject to appeal, the court's decision means the JMSE applicants must pay their costs of involvement with the tribunal. Having lost the High Court case, they are also likely to face considerable costs relating to the court proceedings. The costs issue will be determined in two weeks' time.
In his judgment, Mr Justice Smyth rejected on all grounds, including a delay in bringing the action, the challenge by Mr Murphy jnr of Ashley House, Batterstown, Co Meath, Mr Reynolds, of Drumree, Pelletstown, Co Meath, and JMSE Ltd against the Flood/Mahon tribunal. Mr Murphy and Mr Reynolds are the chairman and managing director of JMSE.
The judge also ruled that the tribunal had the power to take into account its findings of obstruction and hindrance when refusing their costs.
Because of his findings on the factual issues in the case, the judge held he did not have to proceed to make findings on constitutional challenges raised in the case by the applicants.
The background to the case stemmed from publication of the tribunal's second interim report of September 29th, 2002, in which it made a number of findings, including that Mr Murphy had obstructed or hindered the tribunal by failing to give a truthful account of the circumstances in which it is alleged he came to attend a meeting at the home of former government minister, Ray Burke, in June 1989 at which, it was alleged, he handed Mr Burke a sum not less than £30,000. It also found that Mr Murphy failed to give a truthful account of his dealings with developer Michael Bailey.
In relation to Mr Reynolds, it found he had hindered the tribunal by failing to give a truthful account of his involvement in the assembly of funds paid to Mr Burke by JMSE or of his dealings with Mr Bailey, and also falsely ascribed to James Gogarty a role in the payment of monies to Mr Burke which Mr Reynolds knew to be untrue.
In its third interim report, dated September 2002 but publication of which was deferred because of continuing legal proceedings involving former assistant Dublin city manager George Redmond, the tribunal made further findings of obstruction and hindrance by Mr Murphy and Mr Reynolds.
It found Mr Murphy failed to give a truthful account of circumstances in which he came, it was alleged, to pay Mr Redmond a sum not less than £12,246 for a strategy that resulted in service charges and levies for a development being fixed at a 1983 level and failing to give a truthful account of how he came, it was alleged, to pay Mr Redmond £15,000 at Clontarf Castle Hotel.