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GAZETTE

A

PRIL

1990

It seems to me that the fact that

Lloyds agreed to pay the costs is

something which is not particularly

unusual - it occurs regularly in

cases where a party to litigation is

entitled to be indemnified in relation

to costs by an insurance company

- it does not prevent the person

entitled to the indemnity from

recovering costs from the other

side.

Also, there is another matter of

practical importance in this. When

this case was stated and appealed

and even before that when the

assessment to Value Added Tax by

the Revenue Commissioners was

being disputed, it was clearly of

very considerable interest to Lloyds

and to Bradleys to get a favourable

finding in the matter and obviously

it seems to me that Bradleys would

not have been inclined to do any-

thing in connection with that

litigation which would prejudice

Lloyds. In those circumstances, it

is very difficult for me to imply an

agreement of such a nature which

would prevent Bradleys from

recovering their costs from the

other side. It is very difficult to

imagine that any capable and

competent solicitor would enter

into an agreement which would

quite clearly be so prejudicial to his

client.

The Revenue are asking me to do

that. I do not think that any sens-

ible and competent solicitor would

enter into an agreement of that

kind. But that is merely a subsidiary

reason. My main reason is that the

agreement by Lloyds to pay the

costs is not sufficient to exclude

the

prima facie

liability, which every

client has, to pay the solicitor who

acted for him in the litigation, and

it is for that reason principally I

must find that in my opinion the

Taxing Master was incorrect in

coming to the conclusion he did

and I consider that the matter

should go back to him to have the

original notice of objections by

Bradleys adjudicated upon.

Eamon Quinn BL for the Revenue;

Denis McDonald BL for W. G.

Bradley & Sons.

DENIS MCDONALD

• Now reported at [1989] ILRM 795.

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