Solicitor disputes IIB claim on Byrne property

A solicitor is disputing claims by IIB Bank that it is entitled to possession of a premises in Crumlin, Dublin, as part repayment of €9 million debts due to it by struck-off solicitor Thomas Byrne.

Solicitor Donal Corrigan, with an address at The Matrix, Churchtown, Dublin, is claiming he has a prior claim over the premises at Crumlin Village, Dublin, over which IIB Bank plc is seeking possession orders.

Mr Corrigan, who practises from the Crumlin premises, also claims his signature was forged on lease documents concering the premises and that a cheque for €800,000 given to him by Mr Byrne in relation to the premises had "bounced".

Mr Justice Peter Kelly today admitted the proceedings by IIB against Mr Byrne and Mr Corrigan to the Commercial Court.

Earlier, Mr Bill O'Brien, for Mr Corrigan, said his client had operated a one-man practice for 30 years in a very careful manner, had given great service to the local community and wished to retire soon.

Counsel opposed the case being admitted to the Commercial Court, which fast tracks High Court cases, on grounds including that it would incur additional costs and that the property in Crumlin was worth below €1 million. Counsel said his side also believed there was no copy of the deed assigning the property to the Bank because of Mr Byrne's failure to honour undertakings. Mr Corrigan had been left with "three useless cheques", counsel added.

Mr Cian Ferriter, for IIB, said he accepted the value of the property has declined in the current market and that valuations had ranged from €1 million down to about €600,000. However, IIB was seeking possession in the conext of a €9 million claim against Mr Byrne arising from a series of commercial transactions.

Mr Ferriter said Mr Byrne had left "a lot of financial destruction" in his wake and this was a perfect case for an expedited hearing. Perhaps Mr Corrigan's real motivaiton in not wishing the case to be admitted was to "stave off the evil day" when the dispute over the Crumlin property would have to be resolved, he added.

Mr Justice Kelly said he would admit the case and noted that representatives of barristers and solicitors had assured him costs in the Commercial Court were on a par with other High Court costs. The fact the case wouild be processed and determined more speedily in the Commercial Court would assist both the bank and Mr Corrigan.

While the value of the premises had fallen, it was clear that when the bank made the loan to Mr Byrne, it was valued at €1.1 million, the judge also said.

Last week, Mr Ferriter said Mr Byrne appeared to have "no intention of engaging with the legal proceedings' and he secured the court's permission to serve notice of the case on Mr Byrne via a press advertisement.

Mr Byrne had attended before the High Court in recent months in connection with proceedings against him by the Law Society which culminated last month in an order striking him off the roll of solicitors and fining him €1 million. His practice at Walkinstown Road, Dublin, has also been closed by the society.

In its proceedings against Mr Byrne and Mr Corrigan, the bank claims the property at Crumlin Village, Crumlin, was advanced as part security, along with several other properties, for a €9 million loan made last year to Mr Byrne.

The proceedings are also against Mr Corrigan as Mr Corrigan is claiming he has a priority interest in the Crumlin property and has declined to yield up possession of the premises. Mr Corrigan claims he assigned his interest in the property to Mr Byrne in September 2007 for €800,000 and received a cheque for that amount which was later dishonoured.

The bank claims the assignment was handed over by Mr Byrne to its solicitors as security when it advanced the €9 million loan to Mr Byrne who represented to it he was the owner of the Crumlin village premises and had leased it to Mr Corrigan. Mr Corrigan claims a purported lease document for the premises was not executed by him.