Solicitors firm sued by bank for €23m opposes claim

A FIRM of solicitors retained by a bank to act for it concerning substantial loans to property developer John Kelly and struck-off solicitor Thomas Byrne is being sued for €23 million over an alleged failure to ensure the bank had proper security related to those loans.

Among a range of claims, KBC Bank Ireland plc alleges the defendant firm — Byrne Wallace (formerly BCM Hanby Wallace) — accepted and relied on “defective” undertakings concerning security over certain properties from Mr Kelly’s then solicitor, Mr Byrne.

KBC Bank Ireland plc, formerly IIB Bank, claims the alleged negligence caused substantial losses to it as it was later unable to recover monies owed to it under the loans by selling the properties involved.