Article originally published on International Law Office, December 21, 2004
The level of legal fees charged by barristers and solicitors has attracted much attention in Ireland in recent years. There is a definite perception in Irish society that lawyers charge too much for their professional services. In particular, much attention has been given to the level of fees charged by barristers working in the numerous tribunals currently in existence in Ireland. Investigative tribunals have become synonymous with high legal fees in recent years. The Beef Tribunal,1 in particular, has become notorious for the number of 'millionaire lawyers' it has supposedly created.
It is in this context that the minister for justice recently established a committee to examine the level of fees charged by lawyers in Ireland. This committee is due to report in early to mid-2005. It is charged with examining fees under a number of terms of reference, of which the most significant is probably:
"to make recommendations for initiatives or changes in this area which, in the committee's considered view, would lead to, or assist in, a reduction of costs associated with civil litigation, would improve accessibility to justice and provide for greater transparency."
The committee is drawn from the civil service, representatives of consumer groups and trade unions, and a number of representatives of the Courts Service (which administers the justice system in Ireland).
Perhaps significantly, it includes no representation from either professional representative body of the legal profession in Ireland: neither the Honourable Society of the Kings Inns (representing barristers) nor the Law Society (representing solicitors) has a presence on the committee.
The committee begins its work in an increasingly hostile climate towards what is perceived, at least in the media, to be very high levels of fees being charged by lawyers. To take an example at random, a recent newspaper article2 reported that the Irish Department of the Environment has paid out almost €8 million to lawyers over the last two years.3
The committee only has the power to make recommendations, but there are strong indications that the government is prepared to take action. There have already been moves on the part of the government to cap legal fees. Earlier this year, the then minister for finance announced that the cost of all legal representation, including third parties, at newly established tribunals of inquiry or other forms of inquiry will be paid by way of a set fee payable for the entirety of the tribunal. The calculation of daily rates will be based on this fee. The Department of Finance estimated that the new rates represent less than 40% of the maximum current rates paid to tribunal/inquiry counsel. They came into effect in September of this year.
In addition, Minister for Justice Mr McDowell recently expressed support for reform proposals in the area of conveyancing, including reductions in the level of fees charged by solicitors. It has been argued that legal costs associated with property transactions could be reduced significantly if new proposals to simplify conveyancing law are implemented. The minister has said he is planning to publish legislation on the issue by Autumn 2005.4
The committee's report, when delivered, is likely to attract a great deal of attention.
Endnotes
1 Established in 1991.
2 The Irish Times, December 1 2004, "Nearly €8 million paid in fees".
3 The minister for the environment was quoted as saying that the composite amount spent by his department on legal fees for all purposes was €4.232 million last year and €3.505 million to date in 2004.
4 The Irish Times, November 25 2004, "Expert says legal reform could cut house buying cost".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.