Director Jim Sheridan’s dispute with law firm over €68,000 bill referred to High Court

 1st March 2022

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A bitter dispute between Oscar-nominated director Jim Sheridan and his former law firm over legal fees has been referred to the High Court.

Mr Sheridan (73) is disputing a €68,000 bill sent to him and his late wife Fran by their former lawyers after they axed the law firm in 2014 due to dissatisfaction with how it was handling the sale of their multi-million euro seafront home, Martha’s Vineyard in Dalkey.

The row was due to be the subject of a hearing at the Office of the Legal Costs Adjudicators yesterday, but the case was adjourned following a successful application from the solicitors, Dublin firm Kirwan McKeown James, for key issues to first be referred by the High Court.

Mr Sheridan has accused his former lawyers of negligence and claims there was a fixed fee agreement to charge him and his wife €5,000 plus Vat and outlays. The law firm has denied the allegations.

Its counsel, Ciarán Lawlor BL, cited case law which stated the task of establishing whether there was negligence was a matter for the courts and not a legal costs adjudicator. He also said that under the Legal Services Regulation Act, where there is a question over the enforceability of a legal fees agreement, the adjudicator has to refer the agreement to the High Court.

“We are confident the High Court will vindicate our client’s position and want that to be done as quickly as possible. We do not want allegations hanging over us for any length of time longer than is necessary,” Mr Lawlor said.

Legal costs adjudicator Paul Behan granted the application, saying he was mandated by the Act to refer the issue as to the enforceability of the fee agreement to the High Court for determination.

He said the outcome would be “crucial” to his ultimate adjudication and that it was the first time such a referral had been made.

The Sheridans hired Kirwan McKeown James in 2012 to assist with the sale of the property, but in legal filings Mr Sheridan claims he terminated their involvement two years later after being “fobbed off” with “excuses and mistruths” about why tasks relating to the sale were not completed.

The law firm sought its fees and in 2018 a High Court judge directed, after getting consent from another solicitor acting for the Sheridans, for the bill be sent to taxation, a process used to determine if the work done warrants the fee charged.

At yesterday’s hearing, Mr Sheridan alleged two partners at the firm had been “well aware” of the fixed-fee agreement but did not tell the High Court before the bill was sent to taxation.

“Now we are here in a car crash not of my making. I wasn’t told the High Court was on, I didn’t attend the High Court. I have no idea how it got here by consent,” he said.

Kirwan McKeown James admit there was an initial €5,000 fixed fee agreement, but claims that after difficulties were encountered with the title for Martha’s Vineyard they informed the Sheridans the fee was no longer appropriate and that an hourly rate would be charged.

But Mr Sheridan said there was “no mention of any change” and that he never received a letter, known as a ‘Section 68’, advising of what would be charged.

Mr Sheridan bought the property for €10m in 2008 and invested several million euro building a 3,400 square foot villa. But the property was dogged by structural issues, which led to a legal dispute with many of those involved in the construction and he sold it for just €2.3m in 2016.