A SOLICITOR in fugitive lawyer Michael Lynn’s practice is not entitled to be indemnified by his professional indemnity insurers against claims arising from undertakings signed by her while employed by Mr Lynn, the High Court has ruled.

The decision by Ms Justice Mary Finlay Geoghegan means Fiona McAleenan, described as the “whistleblower” on Mr Lynn’s activities, could face exposure to substantial claims. Mr Lynn is being pursued by banks and others for more than €80 million and more than 250 claims have been made to insurers.

Ms McAleenan, a mother of seven, Betaghstown, Co Meath, worked in Mr Lynn’s practice, Michael Lynn Co, from November 2004 until September 2007 when she contacted the Law Society about apparently conflicting material relating to borrowings of €7 million by Mr Lynn and the registration of charges on properties.

It emerged multiple undertakings were given to financial institutions on the same properties but not complied with in many cases.

Ms McAleenan agreed she signed some of the undertakings but claimed she did so in good faith. She denied the signature on other undertakings was hers and AIG accepted her signature appeared to have been forged by another person in the practice.

Ms Justice Finlay Geoghegan yesterday ruled that AIG was entitled to repudiate a professional indemnity policy against Ms McAleenan on grounds that she had materially misrepresented to AIG, when signing the insurance proposal form of April 2007, that she was a partner in the practice for two years when she was only an employee. This was a “material mis-statement” of her status.

The form had already been completed when Ms McAleenan was asked by Mr Lynn’s personal assistant Liz Doyle to sign it.