Two lawyers with a UK legal firm which has employed struck-off solicitor Elio Malocco as its "practice manager" have been permitted by the High Court to represent an Irish group which is suing First Active for damages over being placed in receivership.
Solicitors with London firm Merriman White are to represent the Cunningham Group, which is seeking damages from First Active after the bank appointed a receiver on the back of loans totalling €40 million provided between 1999 and 2002.
First Active's lawyers expressed concern that Malocco was described in correspondence from Merriman White as its practice manager, even though he had served a jail term for fraud while working as a solicitor in Ireland.
Merriman White has also given legal advice to missing solicitor Michael Lynn but has not represented him. Mr Lynn was mentioned in the Cunningham case last November when the firm sought discovery of documents before the full hearing of its case against the bank, which is due to take place next April. Mr Lynn, the court was told, had acted for the Cunningham Group in 2004 when First Active made a loan to Mr Lynn for more than €5 million.
Mr Lynn had failed to repay the loan and First Active took proceedings against him. The loan was one of a number referred to by a High Court judge when he suggested the file on a number of Mr Lynn's dealings should be referred to the Garda National Bureau of Fraud Investigation.
The High Court was told yesterday that solicitors representing the Cunningham Group for the past four years wanted to come off record because of the heavy workload involved and that Cunningham had approached Merriman White because it wanted the case dealt with as quickly as possible.
Maurice Collins, counsel for First Active, objected, arguing that there was no provision in the regulations for a foreign firm to act in an Irish court.
Mr Justice Frank Clarke said the regulations governing visiting lawyers referred to individuals rather than to a firm of solicitors. This had to be done with an Irish legal firm which would be accountable to the court. The judge said he would allow the solicitors from Merriman White to come on record with the Irish firm, McMahon and Tweedy.
