Chairman to rule next week on legal costs

The chairman of the planning tribunal, Judge Alan Mahon, is to rule next week on whether the State should pay the costs of 10 parties who gave evidence to the inquiry.

Judge Mahon yesterday heard submissions on costs from the 10 parties, and adjourned another four applications to next week. Further submissions, for costs amounting to tens of millions of euro, are expected at later hearings.

The largest bill under scrutiny was the €3.5 million sought by James Gogarty, the octogenarian whistleblower whose allegations about bribes to former minister Ray Burke were vindicated in the reports written by former tribunal chairman Mr Justice Feargus Flood.

Mr Gogarty's lawyers said their client had been under a "tremendous cloud" for four years as he battled to defend a series of allegations from his former employer, JMSE, and others.

Brian O'Moore SC said Mr Gogarty's opponents put up a series of stories designed to "damn" the retired executive. Yet all had been dismissed as being without substance.

He said there "couldn't be a clearer case" for paying full costs than that of Mr Gogarty, an aged, infirm man of no great independent wealth, subjected to allegations of perjury, who had been through lengthy evidence and the "crucible" of cross-examination but "comes out right at the other end".

Lawyers for Dermot Ahern defended the €269,000 bill submitted on behalf of the Fianna Fáil Minister, who gave evidence in May 1999 about his efforts to ascertain the veracity of Mr Gogarty's allegations.

Jonathan Kilfeather, barrister, said that arising from Mr Ahern's cross-examination by JMSE lawyers, his client had substantial grounds for concern about possible adverse findings by the tribunal. He became "embroiled" in the inquiry for four or five weeks and a number of witnesses were called on his behalf.

Mr Ahern co-operated fully and, ultimately, no adverse finding was made against him.

Tribunal counsel Des O'Neill SC refrained from commenting on individual submissions but pointed to the guidelines on costs supplied by the Minister for Finance. These say there is no general entitlement to costs, the award of which is at the discretion of the chairman.

Hugh Millar, solicitor, for Binchys solicitors said the firm's involvement with the tribunal had "taken on a life of its own" and had stretched resources "to the limit". He said John Caldwell was not involved with the firm at the time of its involvement with the tribunal in 2000 and had been separately represented.

Mr Caldwell, who failed to co-operate with the tribunal, is a former partner with and consultant to Binchys.

Séamus Ó Tuathail SC, for Post Publications and the journalist Frank Connolly, said his clients' reports in the Sunday Business Post had led to the setting up of the tribunal. Because of their leading role in highlighting Mr Gogarty's allegations, they were subjected to "very heavy attacks". Their total estimated costs are €170,000.

Gerard Hogan SC, for financier Dermot Desmond, said there was no suggestion that his client had been "other than helpful". While it was true that Mr Desmond could afford to pay his own legal costs of over €71,000, his "considerable financial standing" should be a "neutral fact" in deciding the issue of costs.

RTÉ and the Independent Radio and Television Commission, also appealed for their costs to be paid (€490,000 and €134,000, respectively). Both argued that although the Whiddy and Stardust tribunals did not pay costs for public bodies, there were other precedents to justify the award of their costs.

Applications from Anglo-Irish Bank, Paul Kierans/Amev, John McGrath and Michael O'Sullivan were adjourned.