DISGRACED SOLICITOR Thomas Byrne faces contempt of court proceedings if he fails to provide certain information over the sale of his family home, the president of the High Court has warned.
Mr Justice Richard Johnson also yesterday once again raised the fact he had still not been given details of bonuses paid to bank and building society officials who sanctioned multimillion loans for Mr Byrne and missing solicitor Michael Lynn, who between them have estimated liabilities of some €120 million.
The judge first raised the issue of bonuses to bankers more than a year ago in the context of proceedings by the Law Society against Mr Byrne and Mr Lynn, but he has yet to be provided by the financial institutions with the material requested. He has requested details of the bonuses paid out and also wanted to know who authorised the loans.
The judge made his brief reference to the bonuses issue when dealing with proceedings by representatives of Mr Byrne’s mother over the alleged sale of the family home to developer John Kelly with whom Mr Byrne was involved in a number of property transactions.
Mr Byrne, whose practice in Walkinstown, Dublin, has been closed down, has estimated liabilities of some €40 million arising from undertakings to financial institutions allegedly given by him as a solicitor to secure loans. He has been struck off the solicitors roll and fined €1 million.
Mr Justice Johnson was told yesterday that representatives of Phyllis Byrne (81), who is a ward of court, are seeking declarations the house at Walkinstown Drive, Dublin, was held in trust for her by Mr Kelly and should be transferred to her. Mr Kelly and Mr Byrne are involved in separate legal proceedings related to their dealings with each other.
Michael Conlon, for Ms Byrne, said she was in a nursing home and her care needed to be funded from the proceeds of the sale of the former family home as she did not have any other means. Mr Conlon said documents provided by the Garda Bureau of Fraud Investigation had shown the deeds had been forged. It was now accepted by all parties, including Mr Byrne, that the deed was void, Mr Conlon said.
Mr Kelly was claiming he paid for the house but never got it but there was “a very serious dispute” over this, Mr Conlon said.
Louis McEntagart, for Mr Kelly, said he wanted to make it clear his client had paid the money “for this transaction to Mr Byrne or to his family”. The court heard Mr Kelly’s lawyers were seeking discovery of documentation in relation to the sale from Mr Byrne’s lawyers and an affidavit of discovery was still awaited.
Seán Ó Siocháin, for Mr Byrne, said they had been fully co-operating and the affidavit would be supplied.
Mr Justice Johnson said that if Mr Byrne did not deal with the matter, “he will be jailed for contempt”. It was time to “stop prevaricating and get on with it”, the judge said. He adjourned the matter to next week for the affidavit to be provided.
In disciplinary proceedings against Mr Byrne last year, the former solicitor claimed Mr Kelly was effectively a partner in the practice and effectively controlled his business.
The Solicitors Disciplinary Tribunal was told last year that Mr Byrne provided about €60 million worth of undertakings (legal promises to carry out certain acts) to banks for loans on his behalf or that of clients. There are multiple outstanding claims by various banks against properties, including the former family home, over which Mr Byrne gave undertakings. He is being pursued for allegedly taking out multiple mortgages on the same properties.