CASE STUDY

Please answer the following questions with regard to the scenario below;

   Employment: wrongful loss of employment by a middle-ranging manager (say salary €50,000 pa).

    1. What are the costs for a Claimant and Defendant when sums are          Not understood or not applicable
       related to a tariff or are open to be freely agreed?
    2. If a case would normally be resolved not by normal court process but   Wrongful loss of employment cases in Ireland, for middle ranging manager on
       by a different procedure (small claim, no fault compensation scheme,   a salary of say €50,000 per annum would normally be resolved through the
       ombudsman, special court or tribunal, business scheme) please state    Employment Appeals Tribunal. In this forum each side has to bear its own
       or estimate the amount that such alternative procedure would cost.     costs. Both the Claimant and Respondent have the option not to avail of
                                                                              legal representation but where they do and both solicitor and Barrister are
                                                                              engaged the costs of a one day hearing would be not less than €12,500,
                                                                              together with outlay and VAT.
    3. Please give some alternatives if ‘normal’ and success/contingency      Success/contingency fees are rarely negotiated in Ireland. An element of
       fees might apply.                                                      contingency does exist where the solicitor will get paid the “normal” fee if
                                                                              successful, but will not be paid at all if unsuccessful.
    4. State the total sum paid by claimant and defendant if the claimant     If the Claimant wins, as costs are not awarded by the Employment Appeals
       wins.                                                                  Tribunal, the Claimant still has to pay his or her own legal costs and the
                                                                              Defendant likewise.
    5. State the total sum paid by claimant and defendant if the Defendant    Likewise if the Defendant wins, the Defendant still has to pay his or her own
       wins.                                                                  legal costs and the Claimant likewise.
    6. Give a range of costs where the case is straightforward.               When a case is straight forward and no barrister is used, the costs would be
                                                                              in the region €7,500 to €15,000, together with VAT and outlay.
    7. Give a range of costs where the case turns out to be more complex.     Where the case turns out to be more complex and a barrister is used the
                                                                              costs can range from anywhere between €25,000 to €75,000, together with
                                                                              VAT and outlay.
    8. Please give a summary (not exhaustive if the detail would be           The costs specified at 2 and 6 above assume a straight forward one day
       complex) that shows the calculations and assumptions.                  hearing before the Employment Appeals Tribunal. The costs at 2 would
                                                                              include where a barrister is used. Whereas the costs at 6 are where a
                                                                              solicitor only appears for the Claimant.

                                                                              The costs at 7 assume that the case takes three days hearing, using a Senior
                                                                              Counsel and Solicitor and being more complex involves more preparation
                                                                              time, consultations etc.

Points to note:

       The objective is not to give definitive accuracy, but to give estimated ‘bottom line’ figures from which general comparisons between different costs
        systems in different countries can be made.
       Assume each case goes all through the court process to a first judgment, and is not settled.


To top