Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - Maintenance and Champerty Cases.

Brendan Howlin

Question:

389 Mr. Howlin asked the Minister for Justice, Equality and Law Reform the number of complaints, investigations, prosecutions and convictions in relation to the offences of maintenance and champerty over the past decade; if he is concerned at reports that litigation is regularly undertaken by legal professionals on a no foal, no fee basis, on foot of agreements that lawyers for a successful plaintiff will be entitled, in addition to party and party costs, to a percentage share of any damages awarded; his views on whether such agreements, if entered into as normal commercial arrangements without any charitable or other altruistic motive, are desirable; if he has had discussions with the Law Society or the Bar Council in relation to either reforming or enforcing the law in this area or to ascertaining its prevalence; if law centres operated by the Legal Aid Board are under instructions to refer querists to private practitioners if they have potential claims for damages that are likely to be undertaken in the private sector on the basis of a contingency fee; if he has any proposals to legislate in this area; and if he will make a statement on the matter. [9841/01]

Minister for Justice, Equality and Law Reform (Mr. O'Donoghue):

The information sought by the Deputy regarding the number of complaints, investigations, prosecutions and convictions in relation to the offences of maintenance and champerty over the past decade is not readily available. The information could only be compiled by diverting staff resources from other important work.

In relation to professional fees, the Deputy will be aware that section 68 of the Solicitors (Amendment) Act, 1994, provides that a solicitor shall not act for a client in connection with any contentious business on the basis that his or her charges are to be calculated as a specified percentage or proportion of any damages that become payable to the client. Any such charges are not recoverable. A contravention of the Solicitors Acts constitutes misconduct on the part of a solicitor for which he or she can be subject to disciplinary proceedings. The code of conduct of the Bar provides that barristers may not accept instructions on condition that payment will be subsequently fixed as a percentage or other proportion of the amount awarded. It is open to a solicitor or barrister to take a case on the basis that his or her ordinary fee will be payable if there is a successful outcome and not otherwise. I am not opposed to this practice.

With regard to the services provided by Legal Aid Board solicitors, I am advised by the board that it does not instruct its law centre staff to refer querists with potential claims for damages to private solicitors.