Missing solicitor Michael Lynn's major insurer, AIG Insurance, has told the High Court that it is voiding policies with the solicitor in their entirety. It is believed this means AIG will argue that Mr Lynn was never insured with it.
In a brief appearance yesterday, Mr Peter Lennon, solicitor for AIG, formally notified the President of the High Court, Mr Justice Richard Johnson, that his client had decided in light of the evidence available to it, to void the policies of insurance relating to Mr Lynn 'ab initio', from the beginning.
Mr Shane Murphy SC, for the Law Society, said AIG had formally notified the Society of its intention to void. Mr Justice Johnson accepted the formal notification.
Yesterday's development appears to indicate that AIG will argue that it is not required to pay out on foot of what are believed to be multi-million euro policies held by Mr Lynn.
However, the company's stance may be disputed in the continuing proceedings by the Society against Mr Lynn, which have been adjourned to the New Year.
Earlier this week, Mr Justice Johnson was told the Society will move to strike off Mr Lynn from the register of solicitors once insurance cover for his practice expires. Mr Murphy said the cover was due to expire at the end of this month.
Mr Murphy said Mr Lynn's run-off insurance cover was in place until December 31st and, in light of that, the Society was deferring an application to suspend Mr Lynn's practising certificate.
Mr Lynn had previously given undertakings not to practice but, in light of his disappearance, the Society has concerns about those undertakings.
It was in light of the insurance issue that the Society had decided not to move now to strike him off because, it said, that may have implications for his insurance.
It is understood that, when a solicitor is suspended, their insurance cover no longer applies.
Mr Lynn failed to obey a court order to appear in court last Wednesday for cross-examination by the Society about property dealings which have contributed to his estimated liabilities of €80m.
A warrant for his arrest remains in being and the
Society is to keep the court informed of any developments. The court has heard Mr Lynn had been in phone contact with his wife since Wednesday last.
In light of Mr Lynn's non-appearance, the proceedings by the Society, together with separate actions against him by various Banks, have been adjourned to January 14th next.
However, the society's investigation into the Mr Lynn's various and complex dealings is continuing.
Mr Lynn has been accused of taking out multiple mortgages on the same properties and has estimated liabilities of some €80m.
His assets have been valued at some €52.5m and he or his firms were listed as having some 154 bank accounts and dealings concerning some 148 properties. Documents relating to
Mr Lynn's dealings have been sent to the Garda National Bureau of Fraud Investigation.
