THE PRESIDENT of the High Court has said he has yet to be given details of bonuses given to bank and building society officials who sanctioned loans for millions of euro to missing solicitor Michael Lynn, who has been struck off the roll of solicitors.
Mr Justice Richard Johnson said yesterday he had sought the information from the financial institutions months ago but had not received it yet and his curiosity was "increasing day by day".
He made the comments when dealing with an application by the Law Society to have €1 million transferred to its compensation fund from Mr Lynn's client account, which has been frozen by court order since last autumn. Irish Nationwide Building Society expressed concern the transfer may prejudice its efforts to recover money owed to it by Mr Lynn.
The judge noted that he had, at the outset of the many court actions against Mr Lynn, asked for information relating to the bank officials who approved the loans to Mr Lynn. "I made a request when this started that I be given details of bonuses paid to the officials when the banks paid the money," he said. The judge said his comment referred to "all the banks and building societies".
The judge was told Irish Nationwide is objecting to the Law Society's application to transfer money frozen in Mr Lynn's client account. The money was frozen last year when details emerged of estimated €80 million liabilities by the solicitor to various financial institutions, and others, mostly arising out of alleged multiple mortgage undertakings given in his professional capacity.
Mr Lynn, who is believed to be in Portugal, has been struck off and fined €2 millon.
Mr Justice Johnson ajdourned the application by the Law Society to transfer money from the frozen account after he was told it may be possible to resolve the matter after discussions between the society and Irish Nationwide.
Ronan Murphy, for the building society, said it was proceeding [to transfer the funds to the compensation fund] on the basis the funds were ringfenced and belonged to Mr Lynn's clients.
Irish Nationwide was asking the society to supply them with particular details, Mr Murphy said. It would be saying that the proposal that money in the client account only belonged to the client was a false proposition, he added.
Shane Murphy SC, for the Law Society, said there was a difference of interpretation between the sides on the legal issue. This was a case where certain clients had been compensated by the Law Society's fund and the society now sought to transfer the frozen Lynn money to that account.
This was an unmeritorious application because the matter had been before the court since last May and this was the first time Irish Nationwide had objected, Mr Murphy said. Mr Justice Johnson said he would adjourn the matter for a week to allow the sides see if they could "find common ground".