Some of the State's leading banks are trying to "jump the queue" in the race to be the first to register claims over properties on which multiple mortgages were allegedly taken out by solicitor Michael Lynn, the High Court has been told by lawyers for other banks. Mary Carolanreports.
The court also heard that at least three, maybe four, mortgages were taken out by Mr Lynn within days of each other in April 2007 over one property - Glenlion House, Thormanby Road, Howth, Co Dublin.
The three known mortgages were taken out for a total estimated value of about €12 million, while the house is said to be worth some €5 million.
The Law Society, which has closed Mr Lynn's practice, has so far secured information about 78 properties on which Mr Lynn borrowed, it also emerged.
Mr Lynn, St Alban's Park, Sandymount, Dublin, is alleged to have taken out multiple mortgages over a large number of properties and his liabilities have been estimated at up to €70 million.
Further information about other properties in relation to which Mr Lynn or solicitors in his firm gave undertakings is being finalised. The society hopes to have that information by Monday week when its proceedings against Mr Lynn will again be before the court.
President of the High Court Mr Justice Richard Johnson yesterday ordered Mr Lynn to disclose within 10 days all undertakings given over properties and rejected Mr Lynn's claim that he was entitled to invoke privilege against self-incrimination in relation to providing that information.
Paul Burns SC, for Mr Lynn, said one division of the court had referred papers about Mr Lynn's dealings to the National Bureau of Fraud Investigation, while another was asking Mr Lynn to provide information which might go against him in other proceedings. Mr Lynn was trying to give reasonable co-operation but was in "an invidious position".
Mr Justice Johnson said there was a statutory basis for the order requiring Mr Lynn to disclose the undertakings. Mr Lynn was also an officer of the court, he added.
Mr Lynn has provided a schedule of properties to the Law Society, which also has title documents held in his practice and other material. A schedule of 78 properties here and one outside the jurisdiction has been received and the society also has material on about 155 undertakings given to institutions.
Shane Murphy SC, for the society, said a "significant issue" remained about the whereabouts of "a substantial number" of title deeds and the society was concerned that information was not readily available to Mr Lynn. The search for those documents was continuing and the society wanted information from financial institutions in that regard.
From the material available, concerns emerged requiring further research, Mr Murphy said.
Objections were raised by several other banks when counsel for Bank of Scotland Ireland and IIB Homeloans asked the court to vary its order relating to Mr Lynn to enable him to fulfil undertakings to complete documents necessary for the banks to register claims over properties.
Pat Hanratty SC, for Bank of Scotland, said the bank was entitled to take whatever action it considered necessary to recover monies due and it was "not part of the court's function to interfere with nature". Ronan Murphy, for Irish Nationwide, said the court should not vary the order and instead the institutions should work together to ensure they had all the necessary information concerning Mr Lynn's dealings with them and other institutions.
Now there was a race between the institutions for priority, Mr Murphy added. Irish Nationwide's claim against Mr Lynn related to Glenlion House in Howth but at least three loans, maybe four, had been given to Mr Lynn in relation to that house by different institutions for at least 80 per cent of the value of the house.
He said the Irish Nationwide loan was drawn down last April 4th, a Bank of Scotland loan on April 20th and a third loan was drawn down on April 24th. His client was not certain about the fourth loan. On that basis, "we are first in line", Mr Murphy said.
Counsel for Ulster Bank, National Irish Bank, Permanent TSB, Bank of Ireland and an individual who bought a house from Mr Lynn last year supported Mr Murphy's proposal to finalise information about Mr Lynn's dealings with them and others.
Una Tighe, for Permanent TSB, said her client would not be happy with orders which allowed other banks to "queue jump". Counsel for the purchaser said it seemed at least two banks had claims regarding his client's property.
Refusing the applications by IIB and Bank of Scotland to vary the order to enable them apply to have Mr Lynn complete undertakings, Mr Justice Johnson stressed he wanted a full schedule of all the properties involved by Monday week and all other aspects of his directions to be complied with.
