Jim McDaid (Donegal North East, Fianna Fail)
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Question 830: To ask the Minister for Defence the amount of compensation paid to claimants in County Donegal under the victims of Army deafness compensation scheme; the amount of money paid in legal fees to legal representatives of these victims; the breakdown of the fees paid to individual legal representatives in County Donegal; the reason it appears legal representatives of these victims were not adequately reimbursed by the State, for their work on behalf of the victims, as a percentage fee on the overall amount of compensation allocated was charged by some solicitors, prior to the victims receiving their compensation; and if in instances where victims feel they have been overcharged by legal representatives in relation to fees, there is provision for them to seek reimbursement under the scheme. [34290/07]

Willie O'Dea (Limerick East, Fianna Fail)
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To avoid any confusion I should clarify that all hearing loss claims were initiated as personal injury actions in the civil courts and there was no statutory Army deafness compensation scheme. The so-called "Early Settlement Scheme" (ESS) was an administrative process used to negotiate early settlements in hearing loss cases where liability was not contested. The ESS process was introduced to dispose of the large volume of claims more cost effectively and speedily than would have been the case had proceedings been allowed to reach finality through the court system.

In all cases, whether settled under the "Early Settlement Scheme" or otherwise, claimants engaged their own legal representation. The solicitor and client relationship is private as are the terms of engagement agreed between the claimant and solicitor. The statutory provisions relating to solicitors' charges to clients are contained in Section 68 of the Solicitors (Amendment) Act, 1994. This Section has been incorporated into guidelines issued by the Law Society of Ireland to practitioners. In simple terms, when taking instruction from clients, the law requires solicitors:

(a)At the outset of a case to provide details in writing of the actual or estimated charges or basis of calculation of charges for the legal services being provided, and

(b)At the conclusion of a case provide the client with a summary of the legal services provided, the amount of expenses incurred in the provision of these legal services and details of the costs that have been recovered by the solicitor form any other party to the proceedings.

Section 68 also precludes solicitors from:

(c)Acting for a client on the basis that any charges to a client are to be calculated as a specified percentage of any damages recovered for the client.

(d)Deducting or appropriating any or all of their charges to a client from any damages or money that may become payable to a client unless there is a prior written agreement between a client and his/her solicitor that this may be done.

I will make arrangements to have the full text of Section 68 placed on my Department's website for information and easy access.

It may not be generally known that there are two main categories of costs that arise in litigation such as personal injury cases. The categories are "party and party" costs and "solicitor and client" costs.

In hearing loss cases, where a Plaintiff received a settlement or court award (other than "all in" settlements which included costs in the settlement amount), the Department generally paid the "party and party" costs only. "Party and party" costs are described as those necessarily and properly incurred for the attainment of justice or for enforcing or defending the rights of the party concerned. The "party and party" costs were generally agreed following negotiation between the Chief State Solicitor and the Plaintiff's solicitor.

In cases settled under the "Early Settlement Scheme" the costs negotiated with solicitors reflected the fact that cases were being settled more rapidly which reduced the cost to the solicitors of bringing cases to conclusion.

In accordance with usual practice in such litigation, the Department did not pay "solicitor and client" costs. Such costs broadly cover any costs over and above those recoverable under the criteria for "party and party" costs. The Department is not responsible for such costs, which are a matter for agreement between client and solicitor.

The issue of claimant legal costs in hearing loss cases should not be confused with the special arrangements in relation to claimant legal costs for applicants under the Residential Institutions Redress Scheme. Under that scheme, legal costs were paid to the legal representatives of applicants at a fixed rate, which was agreed in advance with the State. There was no such arrangement in hearing loss cases.

In responding to queries on the issue of costs, my Department informs claimants of the provisions of Section 68 Subsection 6 of the Solicitors (Amendment) Act, 1994 entitling them to obtain details of the costs from their solicitor. The Department also informs claimants that the Law Society of Ireland is the statutory body entrusted with responsibility to investigate complaints against solicitors by any client and that the Law Society has procedures in place in this regard. Where claimants have been unable to obtain details of costs from their solicitors, the Department has tried to obtain copies from the Chief State Solicitor. This is not always possible given the passage of time.

The information requested by the Deputy in relation to County Donegal is not readily available. The system of recording hearing loss claims does not allow for its retrieval without a considerable use of staff resources. Any details retrieved would not in any event show whether there had been any breach of the law in relation to solicitor and client charges in any particular cases. However I will contact the Deputy with relevant information that may be available. Also, if the Deputy has any particular cases in mind he should write to my Department, which will try to assist as outlined above. I also intend writing to the President of the Law Society on the matter to look at the issue again.