A solicitor in disgraced lawyer Michael Lynn's firm has lost her High Court attempt to stop the firm's insurers avoiding liability for any claims arising from her employment.
Fiona McAleenan, who began working with Michael Lynn and Company in November 2004, had claimed she was 'a victim' of Mr Lynn.
She claimed she was entitled to be indemnified by his insurers AIG Insurance Company Ltd against any claims arising from undertakings she signed while with the firm in 2007.
Ms McAleenan left the practice in September 2007 and notified the Law Society when she became aware that Mr Lynn had drawn down €7m from Ulster Bank, which was not recorded in the practice account.
Ms Justice Mary Finlay Geoghegan found the insurance company was entitled to void the policy against Ms McAleenan because in a form submitted to the company she had misrepresented her status in the practice as a partner when in fact she was an employee.
The judge found that Ms McAleenan had no intent to deceive the insurance company as to her status in the firm.
However, she found her misstatement of her status was made recklessly, careless as to whether it be true or false, and therefore found that it was not innocent and not free of fraudulent intent.
The decision means Ms McAleenan is exposed to claims relating to undertakings she gave on properties in 2007.
