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INSURANCE GIANT AIG is entitled not to pay out under a professional indemnity policy issued to missing solicitor Michael Lynn and his overseas law company because of non-disclosure of legal undertakings on multiple mortgages that could not be honoured, the Commercial Court has ruled.

However, Mr Justice Peter Kelly deferred making formal orders against Mr Lynn and his company pending the outcome of separate proceedings involving another solicitor in his firm, Fiona McAleenan, who claims she is entitled to an indemnity under the policy.