Banks seek €20m from solicitor in court actions

Three banks will seek judgment of about €20 million in total from solicitor Thomas A Byrne in separate proceedings that will …

Three banks will seek judgment of about €20 million in total from solicitor Thomas A Byrne in separate proceedings that will come before the Commercial Court later this week.

Meanwhile, the investigation by the Law Society into the solicitor's practice at Walkinstown Road, Dublin, is continuing, and a fourth bank, IIB Bank, is still trying to trace the whereabouts of some €9 million loaned by it to Mr Byrne.

Mr Byrne attended at the Four Courts yesterday, when various proceedings against him came before the High Court and the Commercial Court. Mr Byrne's practice has been closed by the Law Society and he is being pursued by a number of banks over alleged mortgage fraud.

In the Commercial Court, Mr Justice Peter Kelly admitted separate proceedings by EBS, ACC Bank and Anglo Irish Bank Corporation into that court's list.

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The judge heard EBS is seeking judgment of some €12.5 million from Mr Byrne and he directed that the bank's motion for judgment in that amount will be dealt with tomorrow.

An application by Anglo Irish Bank for judgment of €4.8 million against Mr Byrne was fixed for hearing on Friday, when the court will also deal with an application by ACC Bank for judgment for some €2.57 million.

Stephen Boggs, for Mr Byrne, asked that the motions for judgment not be dealt with yesterday, saying he needed a short time to get instructions in the various matters.

Also yesterday morning, when the proceedings by the Law Society against Mr Byrne came before the president of the High Court, Mr Justice Richard Johnson, Shane Murphy SC, for the society, said its investigation into Mr Byrne's practice was ongoing.

Mr Byrne's counsel had sought time to file affidavits, and the society, in those circumstances, had not objected to the matter being adjourned for two weeks.

Seán Ó Siothcháin, for Mr Byrne, said there had been some quibbling over his side's access to files of Mr Byrne's held by the society. His side was anxious to co-operate and wanted the society to make the files available to it. Mr Murphy said there was no need for the court to make an order in that regard.

AIG Insurers, the firm that provides insurance for Mr Byrne, and counsel for some financial institutions said they were anxious to have access to the information gathered by the various financial institutions who dealt with Mr Byrne.

Mr Justice Johnson said he had previously directed that the information be provided to all the financial institutions.

In separate proceedings by IIB Bank against Mr Byrne, Mr Justice Brian McGovern continued freezing orders over accounts held by Mr Byrne with National Irish Bank.

The court was told last week that those orders had been too late to prevent the disappearance of a sum of €9 million, loaned by IIB Bank to Mr Byrne and lodged in an NIB account.

IIB has expressed concerns that the loan of €9 million paid to Mr Byrne was secured on a number of properties that were the subject of a prior mortgage with other banks - Bank of Scotland Ireland, ICS Building Society, Anglo Irish Bank, Bank of Ireland and Ulster Bank Ltd.

It also said it had concerns about title documents to some properties.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times