Solicitors' fines 'inadequate', says judge

THE PRESIDENT of the High Court has said fines of €25,000 imposed on two solicitors after they were found guilty of professional…

THE PRESIDENT of the High Court has said fines of €25,000 imposed on two solicitors after they were found guilty of professional misconduct by the Law Society's Solicitors' Disciplinary Tribunal were "completely inadequate", and a striking off order may be more appropriate.

"I regard the fines as derisory when you have solicitors lying to their own body," Mr Justice Richard Johnson said.

He made the remark yesterday when hearing an application by the society to deal with the Solicitors' Disciplinary Tribunal recommendation in relation to solicitors Michael McDarby and SeáActon, of Michael McDarby and Co, in Ballinrobe, Co Mayo.

Last February the solicitors were censured by the tribunal and fined €25,000 in relation to alleged charging of a 10 per cent levy by them in personal injuries actions, despite having had their costs already covered by the insurance companies.

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During that hearing before the tribunal, the Law Society recommended the two be struck off, but the tribunal instead decided they should be fined €25,000 each.

The pair had admitted six out of nine charges and were found guilty on eight. Last month the tribunal ruled the two should be fined a further €500 for professional misconduct after both were employed for opposing parties in a traffic incident.

Yesterday, when the recommendations of the tribunal came before Mr Justice Johnson in the High Court, the judge said he regarded the sanction imposed by the tribunal as "completely inadequate". "I think striking-off would be more appropriate," he said.

The judge adjourned the matter for four weeks so that a full hearing by the High Court of the tribunal's recommendations could be arranged. Earlier, Paul Anthony McDermott, for the Law Society, said the pair had driven "a horse and cart" through the regulations they were supposed to abide by. The tribunal inquiry had also heard Mr McDarby had misled the Law Society's investigating accountant, Mr McDermott said.

The Law Society, the ruling body for solicitors, has no power to strike solicitors off and can only make representations to have solicitors removed after handing over their investigations to the independent tribunal. The High Court can then confirm, reject or amend the tribunal's recommendation.

In a separate case yesterday, Mr Justice Johnson made an order striking off a solicitor who stole €1.6 million from up to 100 clients. Niall P Colfer (50), whose practice was at Donaghmede shopping centre, Dublin, did not contest the case, which came on foot of a recommendation from the tribunal that he be struck off.

Mr Justice Johnson confirmed the tribunal's recommendation that Mr Colfer pay €800,000 to the Law Society compensation fund. He was also ordered to pay all costs in the case.

The Law Society has already paid €1.6 million in compensation, the court heard.

Meanwhile, in the Commercial Court, Mr Justice Peter Kelly granted judgment to Permanent TSB bank for €1.88 million against struck-off solicitor Thomas Byrne relating to money loaned for commercial transactions by the bank.

The case arose from a transaction for the refinancing of an existing commercial loan facility secured, or agreed to be secured on, a property at 75 Upper Dorset Street, Dublin.

The bank claimed it released the loan cheque to Mr Byrne on condition he use it to discharge the balance of €1.88 million on the original loan facility. It claims Mr Byrne failed to do that.

Three clients of Mr Byrne are also being sued in connection with the matter, and the proceedings against them have been adjourned for three weeks.

Those clients have been described as "unfortunate victims" of Mr Byrne in relation to the transaction.