Par-la-Ville Hotel and Residences Ltd was ordered to pay Mexico Infrastructure Finance LLC more than $19 million yesterday by Puisne Judge Justice Stephen Hellman.

The case, which was heard in the Commercial Courts, was brought by MIF for a total of $19,397,819, in the aftermath of Par-la-Ville Hotel and Residences’ default of an $18 million loan along with fees and interest charges.

Developer Michael MacLean, who is described as the managing director of Par-la-Ville Hotel and Residences Ltd in some documentation, and Yasmin MacLean, were also named as defendants in the legal action.

It is the latest chapter in a saga that resulted in the Par-la-Ville car park going into receivership. The Corporation of Hamilton had backed the loan, providing the Par-la-Ville car park in Hamilton as collateral. The car park had also been the site of the proposed hotel and residences that the company had planned to build.

When Par-la-Ville Hotel and Residencesfailed to pay back the money owed on the due date — December 31, 2014 — the car park went to receivers KPMG.

The money was loaned to secure the main portion of funding for the major development project, but instead was paid to a company called Argyle Limited, based in Gibraltar, as a fee to provide a line of credit for investment purposes.

The failed deal was cited by Minister of Home Affairs Michael Fahy as one of the reasons he assumed stewardship of the Corporation in January.

MIF had asked for summary judgment in the case, and Justice Hellman awarded it after hearing lawyer Narinder Hargun break down the claim, and respond to counter claims brought by the defendants.

Par-la-Ville Hotel and Residences was represented by lawyer Marc Daniels, who explained that he had only been instructed by his clients on Tuesday.

Summing up, Justice Hellman said he was “satisfied” in regard to the accounting of the claim, and that the money was owed to the plaintiff.

On the other hand, he said the defendant “has suffered and continues to suffer losses on these matters” which, it was indicated, he planned to ask the court to assess in a trial.

However, Justice Hellman said: “I cannot conclude that the defendant has any claim whatsoever in this matter.”

He also said Par-la-Ville Hotel and Residences had argued that the case should be heard by the New York courts. But he said the defence was “dealt a fatal blow” by a clause in the credit agreement which governed the terms of the $18 million loan.

The parties had signed an agreement that meant that while the borrower must bring any legal action in New York, the lenders – MIF – benefited from a “non-exclusive jurisdiction” clause, which he said “waives the defence of non conveniens forum”.

He said: “The borrower can bring the action elsewhere – in this case, Bermuda,” and continued: “Any lender is going to want to bring an action where a borrower and more importantly, a borrower’s assets, are located.”

He noted that Par-la-Ville Hotel and Residences Limited is incorporated in Bermuda, and performs their business in Bermuda, and so he concluded the Bermuda court had jurisdiction. However, he said, it did not matter where the case was heard, the outcome would be the same.

“The credit agreement provides non-exclusive jurisdiction,” he emphasised, adding that the balance of convenience favoured Bermuda as the appropriate forum to hear the case.

“I am satisfied there is nothing on the jurisdiction point,” he said. He concluded that Mexico Infrastructure was entitled to judgment, and also awarded costs to the plaintiff.

Mr Hellman added that the ruling was “no reflection” on Mr Daniels, who had said during the proceedings that he was being instructed “in real time”.

He had stepped in after the defendant’s previous counsel had withdrawn from the case.