THE President of the High court Mr Justice Costello, yesterday suggested that a Dublin solicitor land the Law Society consider proposals that the solicitor give up being principal of his own law firm and become an employee.
The judge had been told the Revenue authorities got judgments totalling £640,000 against Mr Denis Murnaghan, who practices as Denis Murnaghan and Co, Upper Mount Street, Dublin.
Mr James Salafia SC, for Mr Murnaghan, said his client claimed to be owed sums of money, including one debt of £440,000 for which he had got a judgment.
Mr Justice Costello adjourned the matter to November 22nd to allow the Law Society to consider proposals in relation to the future of the practice and allow accountants for both sides to confer.
Mr Tom Fallon, for the Law Society, had applied for an order revoking Mr Murnaghan's certificate to practice because the society believed he was unable to discharge his liabilities.
Mr Fallon said that in March 1994, a judgment had been registered in favour of the collector-general against Mr Murnaghan for £536,449. The solicitor's practising certificate was refused on two occasions on foot of the Revenue liability. The refusals were challenged in the High Court which said Mr Murnaghan could continue to practice subject to conditions.
One condition was that should the Revenue take steps to enforce the judgment on or before December 1st, 1995, or during the course of any practice year in respect of which conditions applied, the society could re-enter the matter before the court.
Mr Fallon said from an early stage Mr Murnaghan had said he was in a difficult position in that he was owed monies and if these came through his problem would be solved. It was also said the Revenue was prepared to await developments.
The attitude of the Revenue Commissioners appeared to have changed because on September 19th it registered judgments for £30,577 and £72,352 against Mr Murnaghan for PAYE and PRSI arrears. Mr Fallon said the Revenue bad informed Mr Murnaghan that if the full amount was not paid by a certain date it would instruct its solicitors to register the judgments and consider initiating bankruptcy proceedings.
Mr Patrick Connolly, secretary of the Compensation Fund Committee, said that on December 31st, 1995, Mr Murnaghan's indebtedness to the collector-general was quantified by his accountants as £828,925.
Mr Murnaghan in an affidavit said he had employed a qualified accountant for 10 years whom he trusted. He realised from discussions with his present accountant that historical returns had been made to the Revenue which duplicated liabilities. Mr Murnaghan said while he accepted he had a substantial liability to the Revenue, he learned that cheques written by him in favour of the Revenue were never presented by his former accountant.
Accepting responsibility for correct returns to the Revenue, he did not resist its application for judgment against him and query the correctness of those returns following his discoveries relating to his former accountant.