A firm of solicitors has denied it was negligent in failing to register with the Companies Office a mortgage of £100,000 on an apartment block site near Naas, Co Kildare, 10 years ago, while acting on behalf of a property development company.

Bank of Ireland has claimed in High Court proceedings that Brown and McCann solicitors, of South Main Street, Naas, agreed to act on its behalf in the taking of a mortgage while the bank was acting for Abbeyford Estates Ltd in the purchase of a site at Sallins Road, Naas.

It alleged the legal firm had the £100,000 mortgage stamped and registered in the Registry of Deeds but failed to have particulars registered with the Companies Office under the terms of the 1963 Companies Act. As a result of the alleged negligence, the bank says it suffered financial damage because Abbey ford Estates Ltd became insolvent and was wound up. On top of the original £100,000 loan, further advances were subsequently made to the company, and it is estimated there is now more than £660,000 due, including a high interest content.

Brown and McCann denies there was ever a contract with the bank. It says it was not under any duty to advise the bank that it did not regard its function as extending to such registration of the mortgage, and was not under any duty of care to the bank.

If the bank suffered damage, this was caused wholly or partly by the negligence and breach of duty of the bank, its servants and agents, the firm pleads.

Opening the case yesterday, Mr Hugh O'Neill SC, for the bank, said he was not suggesting that the non-registration of the mortgage was done maliciously, but rather that it was an oversight.

While the bank had no agreement in writing with Brown and McCann, the legal firm, in agreeing to act on behalf of the bank in the taking out of a mortgage, had a duty of care to register that mortgage.

The hearing continues before Mr Justice O'Donovan today.