TWO BUSINESSMEN have agreed to mediation of their dispute over alleged negligence, breach of ethics and overcharging by law firm Lavelle Coleman in its conduct of their proceedings over alleged misappropriation of intellectual property rights.

Kevin McCabe and James Glynn had sued Lavelle Coleman in proceedings which opened on Tuesday before Mr Justice George Birmingham. But, as the case entered its second day yesterday, the judge asked the sides to consider mediation.

After a short adjournment, Mr McCabe told the judge they had agreed to mediation with senior counsel Colm Ó hOisín as mediator. The judge welcomed the development and adjourned the case for mention on Monday, when he will be told how the mediation is progressing.

The men allege Lavelle Coleman told them in September 2005 the maximum fees required to conclude their case would be €80,000. They claim they have spent about €750,000 to date on legal fees, comprising €500,000 on legal fees here and a further €250,000 on legal fees in the US.

They have also claimed Lavelle Coleman withheld advice from them from a senior counsel outlining weaknesses in their case.

The firm also “forced” the remortgaging of their homes when both had no confirmed future income, they have alleged.

Lavelle Coleman has denied the claims and, without prejudice to its denials, has also alleged contributory negligence by the plaintiffs in allegedly failing to engage or properly engage or instruct the firm, follow its advice and discharge its fees.

Mr McCabe of Oakfield Park, Naas, Co Kildare, and Mr Glynn, New Abbey, Castlemartin Lodge, Kilcullen, Co Kildare, are conducting their own case.

The defendant firm is represented by two senior counsel and junior counsel.

The case arose from litigation brought by the plaintiffs in 2005 against two UK businessmen – Jonathan Owen of Goodge Street, London, and Allan Owen of Silverhill, Northern Cowton, Northallerton – and Stephen Leyland of Ballymoney Road, Holywood, Co Down. The case against Mr Leyland was later dismissed.

The plaintiffs and defendants were directors of Fatstrippa Holdings Ltd and Fatstrippa Corporation Ltd, which were set up in 2001 to produce and distribute a product invented by Allan Owen which separated water from oil.

Mr McCabe and Mr Glynn alleged the Owens conspired together and with others in the US to incorporate various companies that were provided with trade secrets, intellectual property and confidential information.