Tests suggest lawyer's signature was forged

RESULTS OF tests carried out for Permanent TSB by a handwriting expert on signed undertakings in the name of Fiona McAleenan, a solicitor in the firm of missing solicitor Michael Lynn, are “not inconsistent” with her claim that her signature was forged, the Commercial Court was told yesterday.

However, despite those findings, Permanent TSB is contending that Ms McAleenan is still liable for some €8.5 million in loans issued by it to Mr Lynn because, it claims, she was a partner in his firm on the relevant dates, the court heard.

Brian Murray SC, for Permanent TSB, said his side had seen documents in which Ms McAleenan had represented herself to the Law Society as a partner in Mr Lynn’s firm and the bank was seeking leave to amend its case against her to reflect that.

The bank wished to claim that, as an alleged partner, Ms McAleenan is liable for the losses sustained by the bank as a result of the signed undertakings on dates in 2007 because, counsel argued, one partner in a firm is liable for the wrongs of another. He said the bank’s original claim was that Ms McAleenan was a partner in Mr Lynn’s firm in 2007 but its new claim was that she was also a partner in 2005 and 2006.

John O’Donnell SC, for Ms McAleenan, said the full action by the bank against his client was fixed for hearing next week and the bank was now making this new claim that Ms McAleenan should be liable for its losses because she caused or permitted certain documents to be signed.

His side’s expert evidence was that the signatures on the undertakings referred to were forged, but the bank was contending that Ms McAleenan was still liable although she had no hand, act or part in relation to the forged documents, counsel said. The claim that she had allowed other documents to be signed on her behalf had not previously been made, he added.

Mr O’Donnell said he could address these new claims but not within the short time available, and in those circumstances he must seek an adjournment of the full case, scheduled for hearing next Tuesday and to run for eight days.

Ms Justice Mary Finlay Geoghegan said she would permit Permanent TSB to amend its claim against Ms McAleenan to include the new claims.

However, given the very serious claims now being made by the bank against Ms McAleenan, the judge said justice required that the court vacate next week’s hearing date of the full action so Ms McAleenan might have adequate time to prepare an amended defence. The adjournment means the full case will not now be heard before October at the earliest.

Permanent TSB has brought its proceedings against Ms McAleenan, whom it alleges is a former partner/practising solicitor in the firms of Michael Lynn Company, and Capel Law.

The proceedings are in relation to loans of more than €8.5 million to Mr Lynn, issued, the bank claims, on security of personal undertakings of Ms McAleenan.

The bank is seeking orders requiring Ms McAleenan, with an address at Betaghstown Wood, Bettystown, Co Meath, to comply with those undertakings. If these cannot be complied with, it is seeking compensation for losses suffered by it as a result of Ms McAleenan’s alleged breach of undertaking. It is also alleged that she was negligent in relation to the taking of security on behalf of the bank and that, under the Partnership Act 1980, the two firms of which Ms McAleenan allegedly was a partner are liable for her alleged acts or omissions.