Tribunal writes to lawyers over costs

The Flood tribunal has asked dozens of parties involved in the first five years f its investigations for an estimate of their legal costs, and the basis on which these are being claimed.

The request marks the first step toward the award of millions of euro in costs to the various people involved in the tribunal's investigations into former Fianna Fáil minister Mr Ray Burke.

The tribunal wrote to lawyers for the various parties, ranging from those centrally involved in the hearings to peripheral witnesses, earlier this month.

Legal sources say they expect the tribunal to hold a public sitting on the issue of costs in the New Year. Mr Justice Flood would then be expected to rule on whether to award all or part of the cost of a particular legal team. However, the Taxing Master sets the final level of costs awarded.

One source yesterday described the level of costs awarded at a tribunal as "a grey area", with the total amount depending greatly on the approach taken by Mr Justice Flood.

If he follows the generous precedent set by the Beef tribunal, the current €20 million bill for the tribunal is likely to rise by a factor of two or three. However, Mr Justice Flood has warned repeatedly that people who fail to co-operate with the tribunal could end up paying their own costs, and even some of the tribunal's costs. The interim report published in September found that 15 people had "hindered and obstructed" the work of the tribunal and these may therefore face this penalty.

Many lawyers are expected to use the €2,250-a-day fee paid to senior counsel on the tribunal team as a yardstick for the preparation of their own bills. However, some will argue they should get more because their involvement in the tribunal was shorter and therefore more disruptive of their Bar practice. Most barristers will also seek an initial briefing fee; these can sometimes exceed €50,000.