State Claims Agency’s Legal Expenses Reach €175 Million in 2024

The legal expenditures of the State Claims Agency (SCA) surged to €175 million in 2024, reflecting an increase of 8.5 percent from the previous year. This data is detailed in the agency’s annual report, released on March 15, 2024. As part of the National Treasury Management Agency (NTMA), the SCA reported a total payout of €287 million in awards and settlements, a notable decrease of 24 percent from €376.8 million in 2023.

The primary contributor to the rising legal costs was plaintiff legal fees, which climbed from €98.2 million to €106.5 million. Additionally, the SCA’s internal legal and operational expenses increased from €63.1 million to €68.4 million. The agency is responsible for managing personal injury claims against state entities, including the Health Service Executive (HSE).

Financial Overview of Claims and Settlements

The breakdown of payouts illustrates a complex landscape of claims. Clinical negligence claims formed the bulk of the total expenses, amounting to €210.5 million, accompanied by legal costs of €115 million. In contrast, general claims accounted for €76.5 million in awards, with associated legal costs of €59.9 million.

The SCA’s report also highlighted a significant increase in its estimated liability, which rose by €167 million to reach €5.35 billion at the close of 2024. This estimate is linked to 10,968 active claims, with the liabilities comprising €3.14 billion in catastrophic clinical claims, €1.1 billion in other clinical claims, and €1.02 billion in general claims. Notably, catastrophic claims, which tend to have higher settlements, were the predominant factor in the liability increase.

Trends in Claim Resolutions

The report indicated that 56 percent of claims resolved by the SCA in 2024 did not require court proceedings, a slight rise from 55 percent in 2023. The agency awarded damages in 59 percent of cases resolved, maintaining a stable outcome compared to the previous year. Court judgments were issued in just over 2 percent of resolved claims.

The SCA emphasized its commitment to mediation as an effective method for resolving claims, particularly in the context of complex clinical issues. The report noted that 43 percent of claims were finalized by the agency’s clinical claims team in 2024.

The findings underscore the ongoing challenges faced by the SCA in managing claims against state entities, while also highlighting its strategic approach to minimizing court involvement through mediation. As the agency navigates a landscape of rising costs, its focus remains on effective claim resolution and fiscal responsibility.