Laws dictating that “minor” cases are heard in the High Court and Circuit Court are leading to “injustices” being inflicted on litigants, a judge has said. The injustice relates to litigants being left with legal fees far greater than the value of the claims brought.
The remarks were made by Mr Justice Michael Twomey, who was was strongly critical of the laws in comments made as he dismissed one such “minor” person injury claim. It involved a woman seeking damages arising from injuries she claimed to have suffered in a road-traffic collision.
The judge said Regina Putniene “suffered an injustice” by incurring legal fees of over €50,000 after losing the claim worth €16,500. Ms Putniene had brought her claim to the Circuit Court, arising from a road-traffic collision that occurred outside Tipperary town in July, 2021. Ms Putniene’s car collided with a truck, driven by the defendant in the case, Brendan McDonald. Munster Derivatives Ltd and the Motor Insurers’ Bureau of Ireland were also defendants in the case.
Ms Putniene claimed she suffered soft-tissue injuries arising from the crash and sought damages to compensate. It was estimated that she was entitled to roughly €16,500 in damages in a successful claim.
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Her case was dismissed by the Circuit Court. She appealed this to the High Court.
In a judgment published on Tuesday, Mr Justice Twomey upheld the Circuit Court’s decision, finding that on the balance of probabilities, Ms Putniene was at fault for the collision. Given she failed in her claim, the judge ordered Ms Putniene pay legal costs in the proceedings.
However, Mr Justice Twomey said that ordering her to pay costs inflicts an injustice on her, in circumstances where her legal bill will likely exceed €50,000 despite the claim being valued at €16,500.
The judge said this scenario “defies all logic”, with Ms Putniene left with a costs bill disproportionate to the claim.
However, current laws dictate that “such outcomes are a daily occurrence in our courts”. Mr Justice Twomey said the court must apply these laws, “even though an injustice results to Ms Putniene”.
The judge said that it cannot be fair, in his view, that “resolving a bona fide claim can cost multiples of the value of the claim”.
“All this court can do is highlight how these laws, unless they are reformed, will continue to inflict injustice, even though the system is supposed to administer justice,” the judge said.
Low monetary thresholds for cases to be heard in the High Court and Circuit Court, set out in legislation, have resulted in minor claims not being heard in the more affordable setting of the District Court, the judge said.
A “dramatic” reduction in the proportion of District and Circuit Courts to High Courts also contributes to this issue, he said.
Mr Justice Twomey said the hearing of Ms Putniene’s minor claim in the High Court was the equivalent of prosecuting a minor crime – a speeding fine, for instance – at the Central Criminal Court, the criminal division of the High Court.
“This would never happen in the criminal division of the High Court because minor criminal matters are never tried in the High Court (which hears only the most serious crimes, such as rape and murder),” Mr Justice Twomey said.
The judge continued: “However, somewhat inexplicably, when it comes to minor civil matters, these cases are heard on a daily basis in the civil division of the High Court.”
The judge said it was “clear” that the “primary winners” of this concentration of litigation in the High Court are lawyers, “who are paid costs which are out of all proportion to the value of the claims”.
The “primary losers”, the judge said, are those who have to pay legal costs.
The difference in costs between cases heard in the District Court and the High Court is in the tens of thousands of euro, the judge said.
A solution to this “injustice” would be a reduction in “prohibitive” costs in the High Court. However, the judge noted that such a reduction “seems very unlikely”. He noted that judges have been calling for such a reduction for 60 years, without success.
Instead, Mr Justice Twomey suggested that consideration be given to ensuring that only serious cases are tried in the civil division of the High Court and that minor cases are dealt with in more affordable courts.
The judge also said the issue could by tackled by increasing the proportion of District Courts and Circuit Courts relative to High Courts.
