FIRST ACTIVE has settled a High Court action aimed at recovering possession of two properties supposedly secured in favour of the bank on undertakings by fugitive solicitor Michael Lynn but later sold on to another man.
The financial institution had brought its action against Mr Lynn and others seeking possession of two properties at Inisfail, Old Bawn, Tallaght, Dublin 24.
The court was told that after being provided with loans from First Active, Michael Lynn and his then business partner acquired an interest in a number of properties including the two in Tallaght which were subsequently sold to another man.
The case opened briefly yesterday but after talks between the sides, Mr Justice Peter Charleton was told the issues between the sides had been resolved.
As part of the settlement the title on the properties “has been cleared” and the sides had also reached agreement on legal costs, the judge was told.
No other details of the settlement were revealed.
Mr Justice Charleton agreed to adjourn the case to a date next month to allow the parties finalise the terms of settlement.
Opening the case earlier, Eoin McCullough, for the bank, said the two properties at Inisfail were secured by Mr Lynn and his then business partner on foot of loan offers from First Active in April 2004.
Mortgages for the properties in the names of Mr Lynn and his business partner were registered with the Property Registration Agency in December 2004, and First Active retained the legal title of the properties.
In 2005, a third man entered into an agreement to buy the properties with a mortgage from Bank of Ireland.
That sale was “unknown” to First Active, there were now two mortgages on the properties and the money Mr Lynn was given by the purchaser had disappeared, counsel said.
Yesterday’s action was part of First Active’s bid to have €5.1 million, plus interest, charged in its favour against Mr Lynn’s interest in a number of properties.
The money lent by First Active to Mr Lynn and his former business partner was issued to buy a number of properties and refinance existing bank facilities.
First Active has settled actions relating to a number of other properties.
Mr Lynn was struck off the roll of solicitors last year and ordered to pay €2 million in fines to the Law Society.
He fled the country in late 2007. It is claimed he owes €80 million to banks and a further €13 million to private investors.
A tribunal has found Mr Lynn guilty of 57 charges of misconduct.