A HIGH Court judge has made an order requiring missing solicitor Michael Lynn to repay loans of some €1.3 million granted to him to help buy four apartments in Dublin for investment purposes.
Mr Justice Peter Kelly granted the order yesterday to Declan McGrath, for National Irish Bank (NIB), in proceedings brought by the bank against Mr Lynn and Fiona McAleenan, a solicitor in Mr Lynn's firm, with an address at Betaghstown Wood, The Narroway, Bettystown, Co Meath.
The order was granted against Mr Lynn in default of appearance by him. When the solicitor's name was called at the Commercial Court yesterday, there was no appearance either by him or by any legal representative acting on his behalf.
Granting judgment, Mr Justice Kelly said he would leave over the issue of NIB's claim for damages against Mr Lynn to the hearing of the proceedings against Ms McAleenan. He also awarded costs against Mr Lynn.
The proceedings by NIB arise from a 20-year loan agreement of February 21st, 2007, under which it agreed to loan Mr Lynn some €1.338 million to assist in the purchase of four apartments in Dublin city for investment.
The bank claims it was agreed that security would be provided for the loan in the form of a first legal mortgage in its favour over each property.
In its action against Ms McAleenan, the bank claims she represented to it that she was a partner in the firm of Michael Lynn & Company and that she would act independently on behalf of the bank in relation to the registration of its interest on the properties.
In those circumstances, it claims Ms McAleenan owed it a duty of care to ensure those representations were true and accurate.
The bank claims Ms McAleenan gave undertakings in relation to each of the properties to ensure that Mr Lynn had executed a mortgage deed/charge in the bank's standard form over the properties and that those charges were the first legal mortgage/charge on the properties.
In its claim against Ms McAleenan, the bank alleges those undertakings were breached.
Ms McAleenan has denied the claims and the trial of the action against her has yet to be heard.
