Lynch denies being 'remarkably careless'
ONE51 investment group CEO Philip Lynch has denied a suggestion that he was "remarkably careless" in protecting himself and his family when they signed up to a €25m loan with AIB to buy lands in Waterford for development.
The suggestion was put by Michael Cush SC to Mr Lynch yesterday, his final day in the witness box.
Mr Lynch and his family are suing AIB and two firms of solicitors -- LK Shields and Matheson Ormsby Prentice (MOP) -- to prevent the bank pursuing them over the €25m loan of February 8, 2007.
The Waterford project involved developer Gerry Conlan who is also being pursued for €25m by AIB in separate proceedings to be heard later.
The bank claims that the loan facility provided for full recourse to the Lynch family and Mr Conlan.
Mr Lynch, his wife Eileen and four children claim that the loan was advanced on a non-recourse basis and allege negligence by the two law firms concerning the deal. The defendants deny the claims.
Replying to Mr Cush for MOP, which acted for Mr Conlan's side on the transaction, Mr Lynch agreed that he never checked back with Mr Conlan as to whether he had secured a non-recourse loan facility on the Waterford deal.
He said he had made clear to Mr Conlan from early 2006 and to Robert Burns -- Mr Lynch's personal assistant -- that full recourse to the Lynch family was "a non-starter".
AIB had said Mr Conlan never asked it for a non-recourse loan, Mr Cush said.
Mr Lynch agreed that no one representing the Lynch family had asked AIB for a non-recourse loan.
The case continues.