THE Minister for Finance has demanded that A&L Goodbody solicitors reveal exactly how much it charged Goodman International during the beef tribunal, the Taxing Master of the High Court was told yesterday.
Costs of almost £3.2 million were allowed by the Taxing Master in a ruling last July in respect of fees to the firm, but the State's legal cost accountants have asked for the company to supply precise details of fees incurred by Mr Larry Goodman's meat company.
However, in a reply to a written request from the Chief State Solicitor for the information last week, A&L Goodbody has said the money paid by Mr Goodman is confidential and enjoys "absolute privilege". The Taxing Master, Mr James Flynn, will rule on the matter today.
He is hearing an appeal by the State against a ruling by the Taxing Master last year allowing Mr Goodman and his companies legal and other costs of more than £7.6 million incurred during the 226 day tribunal.
Mr Peter Fitzpatrick, legal cost accountant for the State, told the Taxing Master: "The instruction fee of more than £3 million for A&L Goodbody is very much at issue. You should be given this information - that is, the hourly rate that Goodbody would normally charge to a client and the hourly rate charged to Goodman International.
"Unless you know what the hourly rate was, you could very well be giving Goodman International more than they actually paid to their solicitors. That is the reality of the situation."
He added: "Obviously it does not suit to give that information, because if it did, we would have it.
However, Mr Arnold Lowe, legal cost accountant for the Goodman side, described the issue as "a complete red herring and stressed that it was not a function of the Taxing Master to inquire into the solicitor/client relationship. He told the Taxing Master: Where are no hourly rates on the scales. What you applied is a notional rate of your own."
Fees of £3,197,975 to A&L Goodbody solicitors were allowed by the Taxing Master in his judgment last July.
Mr Fitzpatrick said a total of £2,997,975 was allowed on an hourly rate basis.
Partners in the firm worked 7,429 hours at £200 an hour, costing £1,485,920, while associates worked 9,451.1 hours at £150 an hour costing £1,470,515. Assistant solicitors put in for more than 726.1 hours at £100 an hour, totalling £72,610, and apprentices worked 438.6 hours at £50 an hour, totalling £21,930.
A further £100,00 was allowed for skill, knowledge, complexity and difficulty, and another £100,000 for effort and responsibility.
The figure of almost £3.2 million was excessive and unnecessary, said Mr Fitzpatrick.
Legal cost accountants for the Goodman side said it was a matter of party to party taxation and should be dealt with on the same basis as any other case.
For the Taxing Master to be made aware of the solicitor/client relationship between A&L Goodbody and Mr Goodman's company would put him in an "impossible position to the extent that you would not be able to exercise an independent judicial function", said Mr Lowe.
Master Flynn said he would consider the request to A&L Goodbody for a breakdown of the figures and rule on the matter today.
The Goodman International account with accountants Stokes Kennedy Crowley during the tribunal, meanwhile, totalled £116,543.47, the hearing was told.
Mr Sean Mooney, a partner in Stokes Kennedy Crowley, said all the fees charged were necessary and appropriate.
The hearing continues today.