Court orders Lynn clients to repay €1.6m loaned by IIB for six properties

A COUPLE who were clients of missing solicitor Michael Lynn have been ordered by the Commercial Court to repay €1.6 million loaned to them by IIB Homeloans Ltd to buy six properties in relation to which Mr Lynn allegedly gave multiple undertakings.

Last January, Bank of Ireland Mortgage Bank secured judgment for more than €2 million against the same couple, Aer Corps officer John Mulkearns and his wife, Lorna, a personal assistant, of Iona Road, Glasnevin, Dublin, in relation to other loans secured on the same properties.

Yesterday, Mr Justice Peter Kelly granted summary judgment for some €1.6 million against the couple arising from loans issued to them by IIB Homeloans in April 2006.

The loans were to have been secured by a first legal mortgage over six properties - two at Hillcrest Park, Lucan, Co Dublin; two at Cluan Buí, Carrick-on-Shannon, Co Leitrim; one at Griffith Drive, Glasnevin, Dublin; and one at Weston Crescent, Lucan.

However, there was a failure to secure the bank's interest, it is claimed.

The bank said that the couple were in default of repayments due on November 1st last and repayment was demanded. The bank said it was entitled to demand repayment if there was a material change in the circumstances of the couple and it alleged that there was a "material adverse change", as Mr Lynn has fled the jurisdiction and appeared to be in contempt of High Court orders.

The bank said that separate letters were sent to the couple advising them that €1.6 million was owing and demanding repayment. Solicitors for Ms Mulkearns had replied, enclosing a letter sent to Bank of Ireland, which had obtained judgment against her, saying that it was proposed to sell the six properties with a view to discharging her debts to various creditors.

On January 28th last, IIB's solicitors had replied, saying it was unlikely that any funds from the sale of the properties would be sufficient to discharge the debts due and demanding repayment of the €1.62 million.

Yesterday, the judge noted there was no appearance by or on behalf of Mr Mulkearns, while Ms Mulkearns was represented by Cian Ferriter. The judge said there was no defence to the bank's claim and he granted judgment against both in the amount sought, plus interest and costs.

When directing the couple to repay €2 million to Bank of Ireland Mortgage Bank last month, the judge was told that the loans issued to the couple by that bank were intended to clear several existing mortgages with other banks, to repay Mr Lynn €200,000 and to buy five properties in Bulgaria from Mr Lynn's company, Kendar Holdings Ltd.