Thursday, March 03, 2011

Archbishop secures judgment for €1.5m

THE ARCHBISHOP of Dublin has secured summary judgment for some €1.5 million on consent against a Dublin solicitor over his misappropriation of that amount after it was bequeathed by a lawyer to the church for charitable purposes.

Mr Justice Peter Kelly granted judgment to Dr Diarmuid Martin at the Commercial Court Monday against Ruairí Ó Ceallaigh.

The court heard Dr Martin had received some €155,000 from the estate of Donal Ó Suilleabháin from the firm Seán Ó Ceallaigh Co Solicitors but only realised a further €1.5 million was due to the church after media reports last August of Law Society proceedings against the firm.

The €1.5 million due under the will of Mr Ó Suilleabháin, Our Lady’s Manor, Bulloch Harbour, Dalkey, was misappropriated by Ó Ceallaigh, a partner in the firm said to have a gambling problem, and used to buy and refurbish properties at Grand Canal Street and Cabra Park, Dublin, the court heard.

Declan McGrath, for Dr Martin, said that as various financial institutions had claims over those properties, there was an issue about the ranking of the archbishop’s claim. 

It might be “futile” to pursue claims that the properties were held on constructive trust for the archbishop, Mr McGrath added.

Mr Ó Suilleabháin was “clearly a charitable man very much attached to his church”, Mr Justice Kelly said. 

This was a case of “unalloyed dishonesty of an unattractive type”, particularly as the money was intended for charitable purposes and the matter involved solicitors in a position of trust and with duties under law.

When that solicitor-client relationship was subject “to this sort of treachery”, it gave rise to “very great concerns”.

Dr Martin had brought proceedings against Cormac Ó Ceallaigh, Rathdrum, Co Wicklow, and Ruairí Ó Ceallaigh, Grand Canal Street, Dublin, formerly practising as Seán Ó Ceallaigh Co Solicitors, Phibsboro, Dublin.

Last October, the High Court ordered the winding up of the firm after Ruairí Ó Ceallaigh used almost €2.5 million of client money to gamble on stocks and shares. 

Mr Justice Nicholas Kearns directed the papers in the case be referred to the DPP. 

The court heard the firm’s total liabilities could be almost €6 million.

Mr McGrath said there was no allegation that Cormac Ó Ceallaigh was involved in the misappropriation. 

He was being sued as a partner in the firm and it was contended he had a liability to Dr Martin, as a client, for the wrongful actions of his partner. 

It was alleged that he was negligent in his capacity as executor of Mr Ó Suilleabháin’s estate and owed a duty of care to the beneficiaries of the estate.

The court heard Mr Ó Suilleabháin died in July 2006 and left €1.7 million in his will of June 1997. 

He left various bequests, including some €16,000 to various relatives. 

Most bequests were to church groups and charities, including a bequest of €75,000 in favour of the Archbishop of Dublin to be applied for the charitable purposes of the Share diocesan fund and for other charitable purposes as selected by the archbishop.

The will left the residue of the estate, valued at some €1.5 million, to the archbishop to be applied by him for the same charitable purposes. 

In October 2007, Dr Martin received a cheque for €95,230 from the Ó Ceallaigh firm and a letter informing him further funds would be sent on completion of the administration of the estate.

In June 2010, he received a letter from Ruairí Ó Ceallaigh enclosing a cheque for €50,188 and a legacy receipt describing that amount as “the full payment” of the legacy due.

The representations in that letter were false as a further sum of €1,551,336 was payable, the archbishop said. 

He alleged deceit and/ or fraudulent misrepresentation by Ruairí Ó Ceallaigh. Mr Justice Kelly transferred the proceedings against both solicitors to the Commercial Court and was told Ó Ceallaigh was consenting to summary judgment and had apologised for his actions.

The judge entered summary judgment against Ó Ceallaigh of €1,551,336, plus interest and costs, and adjourned for four weeks.