Ulster Bank to seek repayment from Lynn

Ulster Bank will apply to the Commercial Court tomorrow for orders requiring solicitor Michael Lynn to repay to it loans of about €6 million.

The court will also deal tomorrow with an application by ACC Bank for judgment of €3.8 million against Mr Lynn and his wife, Bríd Murphy, arising from a loan granted for the purchase by the couple of a house in Howth, Co Dublin.

Mr Justice Peter Kelly yesterday rejected an application by Patrick O'Reilly, for Ms Murphy, to treat her loan for the purchase of Glenlion House, Thormanby Road, Howth, as a non-commercial mortgage.

Counsel said the couple had intended that the house would be their family home.

The judge said it "made no sense" to transfer part of the case from one division of the High Court to another where liability arose from a single instruction.

Mr O'Reilly had argued that Ms Murphy was in a different position in that she took out a residential loan.

"There is no doubt it [ Glenlion] was the family home when it was purchased at the tail end of 2006. It was intended that St Alban's Park in Sandymount [ where the couple currently live] would be sold and they would move into Glenlion as the family home," he said.

Counsel said the couple were to remain in St Alban's Park while Glenlion underwent refurbishment. "From Ms Murphy's perspective, it is a loan for a residence she intends to move into."

Mr Justice Kelly said he would deal with the application for summary judgment against both Mr Lynn and his wife tomorrow.

Ulster Bank's application for judgment for some €6 million arising from three loans did not proceed yesterday because a number of loan documents were not included in the bank's legal papers for the court. Seán Sexton, solicitor for Mr Lynn, said his client was not objecting to judgment but there was a difficulty about the documents.

Mr Justice Kelly said he would adjourn the application to tomorrow as the proofs were not in order.

The Law Society has closed Mr Lynn's practice, Michael Lynn & Company, and is still investigating his affairs. It has to date secured information about 78 properties concerning which Mr Lynn was a borrower of funds.

Mr Lynn is alleged to have taken out multiple mortgages over a large number of properties and his liabilities have been estimated at up to €70 million.