In Ireland do the legal fees get paid out of a claimant’s award?

In Ireland, the standard rule when it comes to legal costs is that “costs follow the event.” This means that if you win your case in court, you are generally entitled to recover a reasonable portion of your legal costs from the party you brought the claim against. These costs are in addition to the compensation, or damages, awarded to you by the court.

How legal costs are assessed

Often, there is disagreement between the claimant’s and the defendant’s legal teams over what amount of legal costs is reasonable. If the parties cannot reach an agreement on costs, the matter is referred to a formal process called taxation of costs.

During taxation, a court-appointed official (usually a legal costs adjudicator) examines each item of legal expenditure and decides how much of it should be allowed. The goal is to ensure that the successful party recovers only reasonable and necessary legal costs.

Will legal costs be deducted from my compensation?

Whether legal fees are deducted from your damages depends on the agreement you have with your solicitor. In some cases, solicitors will accept the taxed costs as full payment for their work. In other cases, they may require a top-up payment from your award to cover any shortfall between what was taxed and the actual time and effort involved in managing your case.

This is why it is important to discuss and agree on legal fees in writing before your case begins. Your solicitor is obliged to provide you with a clear explanation of how legal costs will be calculated and whether any portion of your compensation might be used to cover fees.

Further guidance

For more detailed information on legal costs and your rights as a client, you can visit the Law Society of Ireland’s website.