Suspended solicitor fails in third bid to halt misconduct inquiry

A suspended solicitor accused of acting on both sides of a land sale has failed for a third time to halt an inquiry into allegations of “very serious misconduct” made against him.

The Solicitors Disciplinary Tribunal rejected an application from Declan O’Callaghan seeking the dismissal of a complaint against him by a Co Mayo concrete products manufacturing firm, Nirvanna Property Holdings Ltd.

Both the High Court and Court of Appeal had previously dismissed challenges by the solicitor aimed at halting the tribunal from taking further steps in its inquiry.

But he made a further attempt to halt the inquiry yesterday, applying to the tribunal itself seeking the dismissal of the case before a full hearing.

His application was refused, with tribunal chairman Justin McKenna citing a Court of Appeal ruling in the case, which found it was “a matter of some general public importance” that once it is determined there is a prima facie case of misconduct against a solicitor, the matter should proceed to substantive inquiry.

Mr O’Callaghan has been suspended from acting as a solicitor since 2018 due to concerns about other matters raised in an independent solicitor’s report, including that he withdrew substantial fees from the estate of a bereaved child.

Yesterday, he advanced a number of grounds for the dismissal of the Nirvanna complaint, including alleging that a director of the company, Tom Fleming, did not have standing to make the complaint and that his defence had been prejudiced by the death of a potential witness,

The case centres on the transfer of development land in Aughadiffin, Co Mayo, in April 2007 by the company to a firm owned by the late businessman Fred Preston.

Mr Fleming claims his company was due to receive €250,000 for the land from Mr Preston. But while the land was transferred into Mr Preston’s ownership, no money was ever received by Mr Fleming’s firm.

It is alleged Mr O’Callaghan’s now defunct firm Kilraine O’Callaghan & Co, which was based in Ballaghaderreen, Co Roscommon, acted for both the vendor and purchaser in the transaction, where there was a clear conflict of interest.

Mr Fleming claims this was at the solicitor’s behest.

Nirvanna also alleges Mr O’Callaghan provided inadequate professional services and was in breach of his duty of care.

The suspended solicitor has vehemently denied the claims.

The tribunal heard his position was that rather than being a property sale, the transfer of the lands was part of arrangements for a joint venture between Mr Fleming and Mr Preston.

Mr O’Callaghan’s counsel Michael Mullooly BL, instructed by solicitors Staunton Caulfield, said Mr Fleming’s business was “in trouble” and that Mr Preston was “in a sense the good ­angel to come in and help support the business”.

He said the bank involved ­wanted the transfer of the lands and that there was “no consideration to be paid”.

Mr Mullooly alleged documents provided under discovery showed the company did not give authorisation to Mr Fleming to make the complaint, only belatedly passing a resolution last year in a bid to “retrospectively cure the defect”.

He also alleged Nirvanna’s complaint was undermined by the fact the €250,000 it claims to be owed was not recorded in its accounts.

Mr Mullooly also claimed Mr O’Callaghan’s defence was “severely prejudiced” by the death in 2022 of Mr Preston, who would have been a ­defence witness.

Mr McKenna said the tribunal was “not persuaded” by Mr Mullooly’s arguments.

Earlier, Nirvanna’s counsel Ruadhán Ó Ciaráin BL, instructed by Langsch and Cunnane Solicitors, claimed the points raised were “an attempt to obfuscate matters and distract from three very simple items”.

These were that the land was transferred from Nirvanna to Mr Preston, that no money was paid and that the same solicitors acted for both vendor and purchaser.

He argued Mr Fleming had been well within his rights to file the complaint against Mr O’Callaghan on behalf of the company.

Mr Ó Ciaráin also argued that even if Mr Preston were alive, he would have been restricted from giving evidence against Nirvanna.

The full tribunal hearing is now due to take place in June.

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