Failure to disclose conflict of interest costs solicitor £480,000

AN award of £480,000 was made in the High Court yesterday in a claim brought by a building contractor against a firm of solicitors…

AN award of £480,000 was made in the High Court yesterday in a claim brought by a building contractor against a firm of solicitors who acted on his behalf in an abortive purchase of a site.

Mr William Phelan, of Phelan Holdings, Kilkenny, claimed Mr Michael Hogan and others of Poe Kiely Hogan, Kilkenny, had acted for him in relation to the purchase of a 6 1/2-acre site off College Road, Kilkenny, for £279,000.

Mr Justice Barron found Mr Phelan's solicitor, Mr Michael Hogan, failed to advise him that he had a conflict of interest in relation to the site.

When Mr Hogan agreed to grant Mr Phelan the right of way to the site over a green strip, he should have advised him to be represented by a different solicitor, the judge said.

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Making an award of £480,000, Mr Justice Barron said this represented half of what Mr Phelan would probably have gained, from the development of the site - £400,000 profit and £80,000 salary.

The judge added that Mr Phelan was entitled to recover £3,750 paid in settlement of an earlier proceeding taken in relation to the project.

The solicitors claimed they never acted as solicitors to Mr Phelan personally.