High Court rules against Master’s referral of AIB statement to DPP

The Master of the High Court acted outside his powers when he sought to refer a case involving €3 million worth of mortgages to the DPP, a High Court judge has ruled.

Master Edmund Honohan, who deals with procedural and other matters relating to cases on their way to a full judge of the High Court, also acted irrationally concerning his claim there was perjury in relation to a solicitor's undertakings providing security for the €3m loans, Ms Justice Iseult O'Malley said.

The judge granted AIB and AIB Mortgage Bank a declaration Mr Honohan had no power to refer statements sworn by bank officials in the solicitor case to the DPP over what Mr Honohan alleged was perjury.

The case arose from proceedings by AIB against former solicitor Angela Farrell, who is also bankrupt, in relation to professional undertakings she gave to the bank on behalf of members of the same family between 1999 and 2009 for mortgages on 20 properties in Dublin.

Those undertakings – including to acquire good and marketable title to the properties and ensure the bank would get first legal charge over them – were allegedly not complied with.

The bank brought proceedings against Ms Farrell which first came before Mr Honohan in the Master’s Court.

Ms Justice O'Malley said, during those hearings in the Master's Court, Mr Honohan said an affidavit sworn by AIB Financial Services official Lynn Hogan was "untruthful" because it stated one of the undertakings was in favour of AIB plc when it was in fact for AIB Mortgage Bank.

Mr Honahan, at a subsequent hearing, said there was no evidence that security for the loans on certain properties had not been put in place. He then said he would be sending papers in the case to the DPP.