THE HIGH Court dispute between the wife of missing solicitor Michael Lynn and several banks over distribution of the €4.7 million proceeds of the sale of Glenlion House, Howth, Co Dublin has been settled.
Yesterday’s aspect of the settlement means the court will not now have to decide Bríd Murphy’s claim as to whether the banks breached a duty of care to her in the circumstances in which they had lent her husband sums totalling more than €11 million for the purchase of Glenlion House without, she claimed, carrying out appropriate checks.
Last month, Ms Murphy (34) had agreed terms with ACC Bank under which it was to get some €4.32 million, the bulk of the €4.7 million proceeds of sale of Glenlion. That left a sum of €413,764 to be distributed, with both Bank of Scotland Ireland and Ms Murphy claiming entitlement to it. That issue went to mediation on the urging of the court.
At the Commercial Court yesterday, Ms Justice Mary Finlay Geoghegan was told by Gary McCarthy, for Ms Murphy, the dispute had been settled in full.
On consent of both sides, the judge made an order directing that the remaining €413,764 be paid out to the solicitors acting for Bank of Scotland Ireland. Mr McCarthy said Irish Nationwide Building Society was not objecting to that payment and ACC also agreed. ACC had advertised as to whether there were any encumbrances on the lodged sum and had received no replies so the only party with an interest in the money was Bank of Scotland Ireland, counsel added.
Patrick Hanratty SC, for Bank of Scotland Ireland, said all of the bank’s claims against Ms Murphy had been settled and reduced to a written agreement, the terms of which were confidential.
As a result of the settlements, Ms Murphy no longer faces potential claims against her by the banks seeking up to €11 million over the purchase of Glenlion arising from multiple mortgages taken out on the property by Mr Lynn from ACC, Bank of Scotland Ireland and Irish Nationwide Building Society in early 2007. Each bank had lent sums of about €3.8 million.
ACC was accepted at earlier hearings to have a prior claim arising from a €3.8 million mortgage granted by it for the purchase of Glenlion House, which was bought for €5.5 million but sold at auction this year to meet some of Mr Lynn’s estimated €80 million liabilities.
Ms Murphy had claimed her husband conducted all financial dealings, that her signature was forged on certain documents, that she was aware only of the loan from Bank of Scotland Ireland and that she had no liability to the other two banks. She also claimed any liability by her to Bank of Scotland Ireland was limited to any money which might be secured by her in the proceedings with ACC Bank because of alleged negligence by Bank of Scotland Ireland in not carrying out proper checks before lending money to her husband.
The settlement of her case with ACC Bank involved the €3.78 million lent by ACC for the purchase of Glenlion being paid to ACC from the €4.7 million net proceeds of the sale of Glenlion.
That deduction left a surplus of €900,000 to be halved between Mr Lynn and Ms Murphy.
Of that surplus, ACC accepted, by virtue of the settlement of the proceedings with Ms Murphy, that she could have half of that sum but that was in turn subject to Bank of Scotland’s claims. ACC was awarded Mr Lynn’s half of the €900,000 because of other loans given to him.
