The Law Society is likely to seek oral evidence from solicitor Michael Lynn on issues arising from an affidavit he filed showing that he had assets of €52.4 million, the High Court heard yesterday.
Proceedings by the Law Society against Mr Lynn were adjourned for a week yesterday while the society continues to investigate his dealings. Mr Lynn is alleged to have taken out multiple mortgages on a large number of properties and has estimated liabilities of more than €70 million.
The president of the High Court, Mr Justice Richard Johnson, was told by Shane Murphy SC, for the society, that Mr Lynn had filed an affidavit which included "a large amount" of information.
Mr Murphy said a number of issues remained to be addressed, probably by oral evidence, and he would be later asking the court to fix a date for that. In the meantime, he was seeking a one-week adjournment.
Separate proceedings by various banks against Mr Lynn came before the Commercial Court yesterday, including proceedings in which Mr Lynn and his wife Bríd Murphy are being pursued for judgment on mortgages taken out with a number of banks over Glenlion House, Thormanby Road, Howth, which they purchased earlier this year to use as their family home.
The property is now for sale.
In the Commercial Court, Mr Justice Peter Kelly admitted to that court's list proceedings in which First Active wants to enforce judgment for €5.1 million against Mr Lynn.
The judge noted other banks may also have claims over some of the properties and there would be an issue about which has priority.
The bank which secured judgment for €5.1 million against Mr Lynn recently has not been paid, and it wants to enforce it by recovering possession of certain properties mortgaged as security for borrowings of €7.5 million.
The total value of the seven properties in relation to which possession is sought is €4 million. Two of the properties have, the bank claims, purportedly been sold on to three other people who have been informed of the bank's proceedings.
Having been told some of the properties were bought bona fide as investment properties, Mr Justice Kelly also directed that the tenants be notified. He was told the bank is seeking to realise securities on debts of €5 million.
Later yesterday, separate proceedings by ACC Bank against Mr Lynn and his wife were adjourned until next Monday after the court heard the bank required further time to investigate information provided by Ms Murphy.
The judge adjourned until today proceedings by Bank of Scotland (Ireland) for judgment against Mr Lynn and Ms Murphy. Ms Murphy claims the bank was negligent in lending money to her for Glenlion House without first checking her husband's situation.
Gary McCarthy, for Ms Murphy, said the bank had an extraordinarily "casual attitude" to lend up to €15.2 million to Mr Lynn and should have taken "proper steps" to ensure his client was not left in the position she was. He said the bank had failed to investigate what Mr Lynn's net worth was in 2004 and in 2005.
Caroline Costello, for the bank, said it was "entirely unreal" to say the bank should have individually assessed the applicants for the loan on Glenlion House.
