A law firm involved in the legal actions against missing solicitor Michael Lynn wrote to the Law Society in recent weeks asking whether it intended taking steps to seize his passport.
Dublin firm Matheson Ormsby Prentice, which is representing a receiver appointed by Anglo Irish Bank and Bank of Scotland (Ireland) over Mr Lynn's property company, Proper T Capel, wrote to the society in recent weeks asking if it would make any application seeking the seizure of Mr Lynn's passport.
It is believed that the society responded by saying there were no grounds on which it could make such an application as its case against Mr Lynn was a civil matter. Ken Murphy, director general of the society, said he could not comment because of the society's ongoing case against Mr Lynn.
Legal sources said the society could not have made an application to take possession of Mr Lynn's passport as such an application could only be made in a criminal case. Gardaí are investigating him, but no criminal proceedings have been brought against Mr Lynn, who owes financial institutions at least €80 million over his property dealings.
Mr Lynn failed to appear in the High Court on Wednesday and again yesterday to answer questions on his property dealings over two scheduled days of cross-examination by the society. The court was told that he was in London earlier this week. His current whereabouts are not known.
The High Court heard yesterday that the society will move to strike off Mr Lynn from the register of solicitors once insurance cover for his practice expires at the end of this month.
The sooner the facts about Mr Lynn's dealings were put out in public, the better, the president of the High Court, Mr Justice Richard Johnson said. A warrant for his arrest remains and the society is to keep the court informed of any developments.
In light of Mr Lynn's non-appearance again yesterday, the society's proceedings, together with separate actions against him by various banks, were adjourned to January 14th. However, the society's investigation into Mr Lynn's dealings is continuing.
To allay public anxiety, these matters should be addressed as speedily as possible, Mr Justice Johnson said. Shane Murphy SC, for the Society, said there had been no sign of Mr Lynn and, in reply to the judge, said the society had no inkling as yet what the next development would be.
Counsel said Mr Lynn's run-off insurance cover remains in place until December 31st and, in light of that, the society was deferring an application to suspend Mr Lynn's practising certificate.
The society has decided not to move to strike him off because that may have implications for his insurance. It is understood that, when a solicitor is suspended, their insurance cover no longer applies. As Mr Lynn's cover expires on December 31st, it is unlikely that any claims made against him after that date would be met. As a result, a rush of claims are expected to be made against him before the end of the year.
Several banks owed money by Mr Lynn met yesterday evening to see if they could agree to a co-ordinated sale of his properties and to reach a consensus on how the proceeds would be divided between them so that their loans could be repaid.
