Lawyers for the Law Society will cross-examine solicitor Michael Lynn in the High Court about his dealings in relation to six properties.
Mr Lynn will be cross-examined over two days next month by Shane Murphy SC, for the society, before the president of the High Court, Mr Justice Richard Johnson. However, his evidence is not admissible in any criminal proceedings as he is required by court order to attend for cross-examination in the High Court.
Mr Lynn, whose practice, Michael Lynn & Co, has been closed by the society, has been accused of taking out multiple mortgages on the same properties and has estimated liabilities of some €80 million. He was not in court yesterday and is said to be suffering from tonsillitis.
When the society's proceedings against Mr Lynn came before Mr Justice Johnson yesterday, Mr Murphy said the society's investigation into Mr Lynn's practice was continuing and the exchange of information between the society and financial institutions relating to Mr Lynn's dealings had not yet been completed.
Counsel said the society was proposing to cross-examine Mr Lynn before the court, and expected that would take two days. He said the society had extracted six cases from the overall files and proposed to ask Mr Lynn about those cases and about the affidavits he had filed.
In those affidavits, Mr Lynn's assets have been valued at some €52.5 million, and he or his firms were listed as having some 154 bank accounts and dealings concerning some 148 properties.
When Mr Justice Johnson asked Gabriel Gavigan, for Mr Lynn, if he considered that two days would be sufficient time for cross-examination, counsel said his client was ill and he had no instructions in that regard.
In response to John Gleeson SC, for IIB Bank, the judge said he believed title deeds relating to properties in connection with which Mr Lynn had dealings could be handed over by the society if there was just one registered charge over that property and where no other institution had loaned money to Mr Lynn in connection with it.
In separate proceedings against Mr Lynn by Barry Lyons, of Lyons Kenny solicitors, James Dwyer SC, for Mr Lyons, said he was seeking the return of title deeds to 10 properties in Carrick-on-Shannon, Co Leitrim.
Mr Murphy said the society did not want to be joined as a defendant in that action, but indicated that deeds would be returned where there were no multiple dealings involved.
The judge was told it appeared that, of the 10 properties, two were not subject to multiple undertakings while the rest were. The judge said financial institutions who were affected by such undertakings should be joined to the proceedings. He was told IIB Bank had an interest in five of the properties.
Mr Gavigan said he had no instructions in this matter as Mr Lynn was ill. The judge adjourned the case for a week.
In his proceedings, Mr Lyons is alleging that failures by Mr Lynn to honour undertakings relating to 10 apartments in Carrick-on-Shannon have left him unable to register ownership of the properties, and he wants the title deeds to the properties.
Last week, Robert Beatty, for Mr Lyons, said time was "of the essence" as judgment mortgages were being registered "every day" against the properties.
The action is against Mr Lynn and a John Riordan. A solicitor for Mr Riordan told the judge yesterday that Mr Riordan had been a co-owner of some properties with Mr Lynn but had transferred his interest in all of the properties to Mr Lynn in 2004 and was unaware of what had happened since.
Meanwhile, in the Commercial Court, Mr Justice Peter Kelly made an order requiring Mr Lynn to repay some €3.8 million to ACCBank arising from loans provided to purchase Glenlion House, Howth, Co Dublin.
