Solicitor Gerald Kean's alleged failure to adhere to his undertaking to return title deeds to a bank for two properties of his ex-girlfriend means the bank faces difficulties securing repayment of loans, a court heard.
The High Court has heard those loans were for around €600,000 made to Dolores Corcoran several years ago.
Sarah Hanratty, of EBS/AIB, said Mr Kean had returned the title deeds of a third property of Ms Corcoran's, but not of two other properties, one of which contained most equity.
The deeds were required over the refinancing of three of four loans made to Ms Corcoran by EBS between 2004 and 2006.
Because those title deeds are now with another financial institution, Permanent TSB, EBS cannot enforce its security for the fourth loan advanced by it to Ms Corcoran, which remains unpaid, Ms Hanratty said.
Asked by Andrew Fitzpatrick, for EBS, why EBS had sued Mr Kean, she said it was because EBS has a considerable loan and most of Ms Corcoran's debt to it had not been refinanced.
The larger loan, for around €600,000, was not refinanced and EBS, due to not having the relevant title deeds, cannot enforce its security concerning the two properties - at Portnahully, Carrigeen, Waterford, and Hunter's Way, Williamstown, Waterford - she said.
Ms Hanratty agreed with Richard Kean, counsel for Mr Kean, that EBS has personal guarantees provided by Ms Corcoran and her father, but said she understood EBS had to rely on the security for the property before it could act.
Richard Kean will continue his cross-examination of Ms Hanratty today in the action by EBS against Gerald Kean alleging failures to comply with his signed undertakings to return the deeds. He denies the claims.
The case is only against Mr Kean, and no allegations are made against other solicitors in the firm, Mr Fitzpatrick said.