The home of missing solicitor Michael Lynn and his wife Bríd Murphy at Sandymount in Dublin is to be sold, after which there will be a court hearing to determine who is entitled to the proceeds of sale, it was agreed by Ms Murphy and two banks at the Commercial Court yesterday.
After being told that Ulster Bank, Bank of Scotland Ireland and Ms Murphy, who have all made claims to the property at 20 St Alban's Park, have agreed it should be sold, Mr Justice Peter Kelly yesterday gave the sides a week to agree on the manner of sale. Larry Brennan, solicitor for Ms Murphy, said that because she is alone she no longer lives in the house but visits there regularly.
The judge also fixed May 27th as the date for a hearing to decide two crucial issues which will effectively determine who will get the bulk of the €4.9 million proceeds of sale of Glenlion House in Howth, the subject of alleged multiple mortgages by Mr Lynn. Mr Lynn and his wife had intended to use Glenlion as their family home but it was sold at auction last week to meet some of the solicitor's estimated €80 million debts.
On the basis of agreed proposals by Ms Murphy and several banks who have made claims over Glenlion, the judge decided that the first issue to be determined at the May 27th hearing is whether Ms Murphy is entitled to 50 per cent of the proceeds.
The court will then address a claim by ACCBank plc, which secured judgment for €3.76 million against Mr Lynn last November in relation to loans granted for the property, that it has a first legal mortgage over the property, giving it priority over claims by Irish Nationwide Building Society, Bank of Scotland Ireland and others.
John McBratney SC, for ACC, said that if Ms Murphy and ACC win their claims, that would wipe out the totality of funds available. If Ms Murphy lost and ACC won, the bank would secure the "lions's share" of the proceeds.
The judge made directions for the exchange of legal documents for the hearing, which was fixed for four days, and directed that advertisements should be placed in The Irish Times and Examiner newspapers notifying the hearing to others who may have potential claims related to the property.
In exchanges with the judge about how service of the proceedings should be effected on Mr Lynn, Mr McBratney said his solicitor was aware of reports of sightings of Mr Lynn in various locations, including Portugal.
The judge said Mr Lynn had absented himself from the jurisdiction. He noted he had been told there was no marital disharmony, that Ms Murphy was in contact with her husband and said service of the documents on Mr Lynn could be effected by posting them to the couple's home.He added he would make no further directions in the case pending the resolution of the claims by Ms Murphy and ACC.
Later yesterday, after Gary McCarthy, for Ms Murphy, queried ACC's attitude to its application for judgment for some €3.76 million against his client relating to loans advanced for Glenlion, Mr McBratney asked for an opportunity to take instructions. Having done so, Mr McBratney said ACC was not pursuing its case against Ms Murphy and that case was struck out by the judge. Ms Murphy is however, still facing actions by Bank of Scotland Ireland and Irish Nationwide Building Society.
