In Ireland we have three Courts of Original Jurisdiction i.e. three courts where you can start your case i.e. the District Court, the Circuit Court and the High Court. The District Court and the Circuit Court have monetary limits. If you bring a claim in the District Court a Judge can only make an award of up to €15,000.00 in damages whereas the Circuit Court limit is €70,000.00 other than for personal injuries which is €60,000.00.
Bringing a Claim
If you bring a claim in the Circuit Court and you receive an amount of damages in the District Court, then the defendant can seek what is called a Costs Differential Order. This entitlement arises under section 17 of the Courts Act 1981 and not alone can this mean that the Plaintiff receives a costs Order which is at the lower Jurisdiction i.e. in the example cited above it would be District Court costs rather than Circuit Court costs but the defendant can then seek an Order for the difference between the costs it is having to pay by having to defend the Circuit Court action as opposed to the costs it would have had to pay for defending a District Court case.
The impact of a costs differential Order is even more extreme if a case is issued in the High Court where it should have been issued in the Circuit Court.
This issue was addressed in a recent Court of Appeal case of Milmoe vs Chatzis and Sheldon Investments Limited. In this case a costs differential order was not made because the defendant solicitor did not send what is known as a costs differential letter i.e. a warning letter that they would seek such an Order.
If it is the case that such a letter is sent on behalf of a Defendant, then the Plaintiff is at significant risk as to being severely penalised in relation to costs if they do not recover an amount of damages relevant to the Court in which proceedings have been issued.
Litigation Legal Advice
For further information in relation to this and any other litigation matter please do not hesitate to contact Donna Phelan, Brendan Dillon or Simone Murray on 01-296-0666.
