Missing solicitor Michael Lynn's major insurers, AIG Insurance, have told the High Court that it is voiding policies with the solicitor in their entirety. Legal sources believe this means AIG will argue that Mr Lynn was never insured with it.
Peter Lennon, solicitor for AIG, yesterday notified the president of the High Court, Mr Justice Richard Johnson, that his client had decided to void the policies of insurance relating to Mr Lynn "ab initio" - from the beginning.
Shane Murphy SC, for the Law Society, said AIG had formally notified the society of its intention to void. Mr Justice Johnson accepted the formal notification.
Yesterday's development appears to indicate that AIG would seek to argue that it is not required to pay out on foot of what are believed to be multimillion euro professional indemnity policies held by Mr Lynn.
However, the company's stance may be disputed in the continuing proceedings by the society against Mr Lynn, which have been adjourned to the new year. Earlier this week, Mr Justice Johnson was told the society will move to strike off Mr Lynn from the register of solicitors once insurance cover for his practice expires. Mr Murphy said the cover was due to expire at the end of this month.
Mr Murphy said Mr Lynn's run-off insurance cover was in place until December 31st and, in light of that, the society was deferring an application to suspend Mr Lynn's practising certificate. Mr Lynn had previously given undertakings not to practice but, in light of his disappearance, the society has concerns about those undertakings.
It was in light of the insurance issue that the society had decided not to move now to strike him off because, it said, that may have implications for his insurance.
It is understood that when a solicitor is suspended, their insurance cover no longer applies.
Mr Lynn failed to obey a court order to appear in court on Wednesday of last week for cross-examination by the society about property dealings which have contributed to his estimated liabilities of €80 million. A warrant for his arrest remains in being and the society is to keep the court informed of any developments.
The court has heard Mr Lynn had been in phone contact with his wife in the past 10 days.
The society's investigation into Mr Lynn's various and complex dealings is continuing.
Mr Lynn has been alleged to have taken out multiple mortgages on the same properties and has estimated liabilities of some €80 million. His assets have been valued at some €52.5 million.
