Solicitor Michael Lynn has been ordered to pay about €5 million to three different banks; the Bank of Scotland Ireland, AIB and National Irish Bank, following proceedings in the Commercial Court today.
Mr Lynn did not oppose the orders for judgment made against him by Mr Justice Peter Kelly but his counsel, Mr Gabriel Gavigan, said his client was not admitting any of the claims in various affidavits from the banks grounding their applications for judgment.
Mr John Gleeson SC, for IIB Homeloans, sought judgment for some €2.57 million against Mr Lynn on grounds that Mr Lynn would not be complying with undertakings related to the loans given to him and also because there had been "a material adverse change" in his position. There was "a multiplicity of legal actions" against him and he was not practising as a solicitor.
Because of a decision this week by the President of the High Court, Mr Gleeson could not proceed at this stage with another application aimed at compelling Mr Lynn execute mortgage deeds relating to properties in Crow Hill, Co Mayo; Dunboyne, Co Meath; Clonsilla, Dublin; Dublin 4; Bolton Court, Dublin 1; and Derreckstown, Dunshaughlin, Co Meath.
Counsel was referring to proceedings yesterday when, after lawyers for other banks accused IIB and Bank of Scotland of trying to jump the queue in the race by financial institutions to recover monies from Mr Lynn, Mr Justice Richard Johnson adjourned to Monday week consideration of how applications to have undertakings performed should be dealt with.
Mr Gleeson said issues will have to be decided at a later stage between the financial institutions which have competing financial undertakings from Mr Lynn relating to the same properties.
In other proceedings, Mr Justcie Kelly granted judgment for some €530,224 to Bank of Scotland Ireland against Mr Lynn relating to loans advanced by the bank relating to two properties - at Redbank, Youghal, Co Cork and Kilmainham Orchard, Dublin 8.
The judge noted the bank claimed Mr Lynn had sold on the Kilmainham property to another party without notifying the bank and without returning title deeds to the bank despite, it is claimed, an undertaking to do so.
Bank of Scotland (Ireland) earlier this week secured judgment for more than €5.75 million against Mr Lynn in relation to other loans made to him.
The judge also granted an application by Allied Irish Bank for orders directing Mr Lynn to pay €322,582 interest, plus costs, on loans totaling €5.85 million made by the bank to Mr Lynn. AIB had secured judgment for the €5.85 million last week but the issue of interest was put back to today.
Mr Declan McGrath BL, for National Irish Bank, then applied for judgment for €1.34 million. Granting judgment, the judge said the Bank claimed it had issued a 20 year loan to Mr Lynn in that amount last February to purchase four apartments, two at Bolton Court, Dublin, one at Weston Square, Dublin and one at Custom Hall, Dublin.
The Bank claimed that Mr Lynn's firm, Michael Lynn & Company, gave undertakings in relation to each property to the effect that mortgage deeds or charges would be executed and that these were the first legal charges over the properties. However, on October 12th last, the Bank said it had learned of isuses relating to Mr Lynn's affairs and had demanded repayment.
The Bank said it had since learned from the Land Registry that the apartments at Bolton Court and Custom Hall were registered in the names of the original owners.