Irish Nationwide in constructive dismissal case

A FORMER home-loans supervisor in Irish Nationwide, who referred a €4.1 million mortgage application from rogue solicitor Michael Lynn on to the building society's chief executive, Michael Fingleton, is taking a constructive dismissal case against the society.

Olivia Greene, who left the society earlier this year, lodged her claim at the Employment Appeals Tribunal last month.

The tribunal said it received the claim in the middle of last month but no hearing date had been set.

There was no comment from Ms Greene or the building society.

Ms Greene featured in a High Court case taken last year by Irish Nationwide's home-loans manager, Brian Fitzgibbon, against the building society.

In that case, which has since been settled, Mr Fitzgibbon said in an affidavit that Ms Greene had referred a loan application of €4.1 million for Mr Lynn's new family home in Howth, Co Dublin, from the society's Dún Laoghaire branch on to Mr Fingleton.

According to the affidavit, Ms Greene was instructed by Mr Fingleton that the loan should be approved as long as the exposure was not more than 75 per cent of the value of the property. Mr Fitzgibbon appended to his affidavit a note that Ms Greene took of her conversation with Mr Fingleton.

Mr Fitzgibbon said that when "the difficulties with Mr Lynn broke in the national newspapers", Mr Fingleton "attempted to deny" he had approved the loan.

Mr Fingleton suggested to Ms Greene that "someone was going to take responsibility for this and that it was not going to be him", Mr Fitzgibbon claimed. This was "in spite of Ms Greene making it very clear to Mr Fingleton that she could not and would not agree such a substantial loan without approval from Mr Fingleton personally", Mr Fitzgibbon claimed.

The society, which is covered by the State bank guarantee, told Minister for Finance Brian Lenihan last month it wished to remain independent and would shore up capital by rapidly shrinking its loan book. The building society told bond analysts in September it expected to contract its loan book this year by more than 10 per cent to about €11 billion by redeeming loans of €2 billion to €3 billion.