Bank of Scotland (Ireland) (BOSI) has secured judgment for more than €5.7 million against solicitor Michael Lynn but the bank's claim for judgment for €3.85 million against Mr Lynn's wife has been adjourned after she raised certain matters in the Commercial Court yesterday.

Brid Murphy, wife of Mr Lynn, said in an affidavit that documents from the bank suggested it was aware when issuing a loan of €3.85 million to herself and her husband for the purchase of a house in Howth, Co Dublin that the money was to be used in whole or in part for his building development business in Portugal.

Mr Justice Peter Kelly said he was "surprised" that documents relating to a homeloan in the Republic for Mr Lynn and his wife included a document in which Mr Lynn's Portuguese property company, Kendar Portugal Sociedade Imobiliara LDA, acknowledged it had received a loan of €3 million from Mr Lynn to be repaid by the end of February.

However, in an affidavit, BOSI sales manager Andrew Snow said he could "categorically confirm" the loan was sought by Mr Lynn and his wife and paid by the bank to enable the couple buy Glenlion House, Thormanby Road, Howth.

Mr Snow said the bank had taken into account that Mr Lynn had loaned €3 million to Kendar when considering his capacity to fund the balance of the Howth transaction and to repay the loan to the bank.

Mr Justice Kelly granted judgment to the bank for a total sum of €5.1 million against Mr Lynn, whose practice has been closed by the Law Society and who has estimated liabilities of up to €70 million. Documents relating to Mr Lynn's dealings with another bank, First Active plc, were sent by the judge last week to the National Bureau of Fraud Investigation. Mr Patrick O'Reilly BL, for Ms Murphy, asked for an adjournment of the bank's application for judgment against his client to allow her address some matters.

The judge said the application for €3.85 million related to funds advanced in April 2007 on terms including that a first legal mortgage would be executed over Glenlion House in favour of BOSI.

The loan was granted on foot of undertakings given by another solicitor acting for the couple, he added. Within days of the loan being drawn down, a mortgage was executed over Glenlion House in favour of ACC Bank, not Bank of Scotland.

He also noted Bank of Scotland had previous dealings with Mr Lynn going back to June 2004 and that it and Mr Lynn had entered into five other mortgage loan arrangements for a total €1.9 million. Those mortgages were not executed.

In those circumstances, Bank of Scotland was entitled to judgment for €3.85 million, plus €1.9 million, against Mr Lynn, the judge ruled.

In relation to Ms Murphy, the judge noted she wanted time to consider bank documents to decide if there was a triable issue as to the purpose of the loan monies and whether she should have been independently legally advised regarding the loan. Ms Murphy should have an opportunity to make her case and he would adjourn the application for judgment to November 14th.