A High Court judge has described as a "witches brew" myriad dealings by solicitor Michael Lynn over properties which are now the subject of several competing claims by individuals and banks in relation both to ownership and to mortgage charges.
Mr Justice Peter Kelly made the remark yesterday when dealing with proceedings by First Active against Mr Lynn and John Riordan in which the bank is seeking orders for possession of seven properties - five in Dublin, one at Carlton Village, Youghal, Co Cork, and one at Glór na Mara, Dock Street, Galway.
The bank claims it had loaned the defendants money in 2004 and 2005 to buy properties and refinance existing bank facilities.
In addition to possession orders, it is also seeking, if necessary, an order that about €5.1 million plus interest is charged in its favour against the defendants' interest in the properties for an order for their sale.
In relation to one of the properties, at Pinebrook Vale, Clonsilla, the court was told a Patrick McDermott is claiming ownership, which is occupied by tenants of his. His counsel said Mr McDermott had learned from the tenant of the bank's proceedings.
Counsel said Mr McDermott was claiming he bought the premises from Mr Lynn.
John Gleeson SC, for IIB Bank, said his client has an interest in Pinebrook as Mr Lynn was meant to execute a charge in favour of the bank relating to that property.
Una Tighe, for Permanent TSB, said it also had an interest in the same property while Caroline Costello, for Bank of Scotland Ireland, said it had lent money to Mr McDermott to acquire the property and that he had agreed to execute a mortgage in the bank's favour over the property.
The judge was also told that Denis Scriven is claiming ownership of another of the properties in the proceedings, at Grey Square, Meath Street, which Mr Scriven claims he bought on undertakings from Mr Lynn.
A solicitor for Mr Riordan said Mr Lynn was his client's solicitor. His client was in the US at the moment and needed time to try to "get to the bottom" of what was happening.
First Active also claims that searches had disclosed prior registered securities in favour of Bank of Ireland, Bank of Scotland Ireland and Irish Nationwide Building Society over the Gray Square property, the property at Glór na Mara, Galway, and properties at South Circular Road and Bessborough Avenue in Dublin.
Mr Justice Kelly remarked there was a "witches brew" in relation to the various dealings in good faith by parties concerning the property. He said the sides should exchange information about their dealings and prepare a chronology of dealings for the court. They should also list issues relating to ownership and charges.
The judge noted that Mr Lynn was to be cross-examined by the Law Society before the president of the High Court next week and said information might emerge about some of the properties.
In relation to the other properties over which First Active is seeking possession orders, Mr Justice Kelly said he suspected other people might be in the same situation as those who had dealings concerning the Pinebrook and Gray Square properties.
In separate proceedings, the judge granted an order to Bank of Ireland Mortgage Bank requiring Mr Lynn to repay to it €2.76 million arising from a loan agreement between the bank and the solicitor in November 2006 for the purchase by Mr Lynn of investment properties.
In other proceedings, the judge gave leave to Ms Tighe, for Permanent TSB, to bring proceedings later this month against Mr Lynn and his company, Proper T Capel Ltd, in which the bank wants judgment in sums totalling about €10.5 million.
