A DEVELOPER whose solicitor was the subject of recent High Court proceedings over a €1 million deficit in his client account has brought a legal action claiming €800,000 was mistakenly paid by him to the solicitor.
Jerry Donovan, of Grange House, Ballyboughal, Co Dublin, is seeking a court order for the return to him of €800,000 which he claims was wrongly or mistakenly paid to his solicitor, Charles O'Neill.
Mr O'Neill's practice of Cathal O'Neill and Co, Rathmines, Dublin, is being run by another solicitor following proceedings taken against him by the Law Society.
The society had successfully applied to the High Court last April to have Mr O'Neill's accounts frozen after a €1.1 million deficit was discovered in his client account.
The court was told the deficit had arisen in relation to one single client - Mr Donovan.
The court heard subsequently that the deficit had been made good via measures including having €258,000 raised on Mr O'Neill's own credit card account. A freezing order on his accounts was lifted.
Mr O'Neill was found guilty last week by the Solicitors' Disciplinary Tribunal of failure to maintain proper financial records in relation to other client transactions.
The separate matter involving Mr Donovan has been adjourned a number of times pending the tribunal hearing, and yesterday the High Court heard Mr Donovan was bringing his own proceedings against Mr O'Neill.
In those proceedings, Mr Donovan is seeking damages alleging negligence, deceit, fraud and breach of trust, and also wants the recovery of all monies paid by him.
He is also claiming damages for breach of contract entered into between the parties within the past six years and for alleged misrepresentation.
Mr Donovan claims a constructive trust operates in his favour relating to the use of the money and wants an order for the return of the €800,000 paid to Mr O'Neill which, he contends, was paid by mistake.
Yesterday, the president of the High Court, Mr Justice Richard Johnson, was told that, in response to Mr Donovan's application, Mr O'Neill had agreed to identify the location of the monies involved, including bank details, and to preserve the funds pending further proceedings.
The judge ordered that the Law Society be made a notice party to the proceedings and he adjourned the matter for a week.
Mr O'Neill told the High Court on June 19th last that the problem over the deficit arose because he failed to "keep an eye" on his business and had, as a result, "paid the price". He disagreed that he had acted more like a banker than a solicitor for Mr Donovan. He said he would regularly issue his firm's own cheques to pay various bills for the developer, including payments to building suppliers.