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.