Banks vie for registering of Lynn properties

SOME of the country’s leading banks are trying to “jump the queue” in the race to be the first to register claims over properties the subject of multiple mortgages taken out by solicitor Michael Lynn, the High Court was told by lawyers for other banks yesterday.

The court also heard that at least three, and maybe four, mortgages were taken out by Mr Lynn within days of each other in April 2007 over one property — Glenlion House, Thiomrmanby Road, Howth, Co Dublin.

The three known mortgages were taken out for a total estimated value of about €12 million, while the house is said to be worth about €5m.

The Law Society, which has closed Mr Lynn’s practice, Michael Lynn & Company, and is still investigating his affairs, has so far secured information about 78 properties concerning which Mr Lynn was a borrower of funds, it also emerged.

Mr Lynn, of St Alban’s Park, Sandymount, Dublin, is alleged to have taken out multiple mortgages over a large number of properties and his liabilities have been estimated at up to €70m.

Further information about other properties in relation to which Mr Lynn or solicitors in his firm gave undertakings are being finalised and the society hopes to have that information by Monday week when proceedings by the society against Mr Lynn will again be before the court.

The President of the High Court, Mr Justice Richard Johnson, yesterday ordered Mr Lynn to disclose within 10 days all undertakings given over properties and rejected Mr Lynn’s claim that he is entitled to invoke privilege against self-incrimination in relation to providing that information.

Paul Burns SC, for Mr Lynn, said one division of the court had referred papers about Mr Lynn’s dealings to the National Bureau of Fraud Investigation while another division was asking Mr Lynn to provide information which might go against him in other proceedings. Mr Lynn was trying to give reasonable cooperation but was in “an invidious position”.

Mr Justice Johnson said there was a statutory basis for the order requiring Mr Lynn to disclose the undertakings. Mr Lynn was also a solicitor and officer of the court, the judge added.

Mr Lynn has provided a schedule of properties to the Law Society which also has possession of title documents held in his practice and other material.

Shane Murphy SC, for the society, said there remained a “significant issue” about the whereabouts of “a substantial number” of title deeds and the society was concerned that information was not readily available to Mr Lynn. The search for those documents was continuing and the society wanted information from financial institutions in that regard.

From the material available, issues of concern emerged requiring further research, counsel said. The society had concerns about potential third party or client undertakings and needed to establish the extent to which there were overlapping undertakings.

Objections were raised by several other banks when counsel for Bank of Scotland Ireland and IIB Homeloans asked the court to vary its order relating to Mr Lynn to enable Mr Lynn fulfil undertakings to complete documents necessary for the banks to register claims over properties.

Pat Hanratty SC, for Bank of Scotland, said the bank was entitled to take whatever action it considered necessary to recover monies due and it was “not part of the court’s function to interfere with nature”.

Ronan Murphy BL, for Irish Nationwide, said the court should not vary the order and instead the institutions should work together to ensure they had all the necessary information.

What was happening now was a race between the institutions for priority, counsel said.

Counsel said the Irish Nationwide loan was drawn down on April 4 last, a Bank of Scotland loan was drawn down on April 20 and a third loan was drawn down on April 24.

On that basis, “we are first in line”, Mr Murphy said.

Counsel for Ulster Bank, National Irish Bank, Permanent TSB, Bank of Ireland and an individual purchaser who bought a house from Mr Lynn last year supported Mr Murphy’s proposal to finalise information about Mr Lynn’s dealings.

Refusing the applications by IIB and BOS to vary the order to enable them apply to have Mr Lynn complete undertakings, the judge stressed he wanted a full schedule of all the properties involved by Monday week and all other aspects of his directions complied with.