Bank takes action against Lynn clients

A BANK has brought a legal action seeking an order requiring an Aer Corps officer and his wife to repay loans of more than €2 million secured on properties allegedly the subject of multiple undertakings by missing solicitor Michael Lynn. The couple were clients of Mr Lynn.

Bank of Ireland Mortgage Bank claims they were told the loans were to clear several existing mortgages with other banks, to repay Mr Lynn €200,000 and to buy five properties in Bulgaria from Mr Lynn’s company, Kendar Holdings Ltd.

The bank’s proceedings against John Mulkearns and Lorna Farrell, of Iona Road, Glasnevin, were admitted by Mr Justice Peter Kelly yesterday to the list of the Commercial Court. Counsel for the defendants, who were separately represented, said they needed time to put in replying affidavits and to examine Law Society files in the proceedings against Mr Lynn.

The judge made directions for the exchange of legal documents and adjourned the case to

January 21.

The bank claims it made a loan offer to the couple in February 2006 of some €2m and that the couple drew down the monies in March 2006.

After seeing on November 15 last a schedule of properties in proceedings brought by the Law Society against Mr Lynn, the bank had learned, “wrongly and in breach of the mortgage loan agreement between the parties”, the defendants had failed to execute a first legal charge in favour of the bank over the properties.