Ill-famed solicitor Michael Lynn was ordered on February 25 to repay loans amounting to 1.3 million euro that he used to buy four apartments for investment purposes, the Irish Independent daily reported.
A High Court judge’s ruling came after the National Irish Bank (NIB) lodged a claim with Lynn.
Justice Peter Kelly received the High Court’s order in Lynn's absence. When his name was called at the Commercial Court, no one stepped up to act on his behalf. Justice Kelly said that NIB's claim for damages against Lynn was unsubstantiated because another solicitor, Fiona McAleenan, was the one facing the charge.
The proceedings by NIB arise from a 20-year loan agreement of February 21, 2007 under which it agreed to lend Lynn 1.338 million euro to assist in the purchase of four apartments in Dublin for investment.
NIB claims it was agreed that the first legal mortgage on each of the properties would serve as collateral for the loan.
In its action against McAleenan, NIB claims she agreed to act independently on behalf of the bank in relation to the registration of its interest on the properties. In those circumstances, NIB claims it was McAleenan’s duty to ensure those representations were true and accurate.
The bank claims McAleenan subsequently gave undertakings on each of the properties to ensure that Lynn had executed a mortgage deed/charge in the bank's standard form.
The undertaking was that those charges were the first legal mortgage/charge on the properties. In its claim against McAleenan, the bank alleges those undertakings were breached.
Ms McAleenan denies all claims. The trial against her has yet to be heard.
Lynn, who has more than 105 properties in Slovakia, Bulgaria, China, Spain, England, Dubai and Ireland, was alleged to have taken out multiple mortgages on several properties with major Irish banks, with alleged loan liabilities of more than 26 million euro.
