Canadian businessman Michael DeGroote, Supreme Court was told yesterday.

They welcomed him to Bermuda while seeing fellow multi-millionaire Marion MacMillan as a disappearing source of business, it was suggested.

Lawyer Mr. Julian Hall told Supreme Court this was one theory about a 1990 deal in which Mrs. MacMillan was to sell Perot's Island to Mr. DeGroote for $8.5 million.

Mr. Hall is lawyer for Mrs. MacMillan. She originally planned to sell the island and leave Bermuda, but backed out of the deal. She is now being sued by Mr. DeGroote.

He says the agreement on Perot's Island played a big part in him cutting his links with Canada and coming to Bermuda.

He wants the island, plus $4.28 million damages which he says will cover "out-of-pocket'' losses, including those from having to live in other accommodation here.

Mrs. MacMillan is fighting the case and has dragged in real estate firms Cooper Associates and the Bank of Butterfield Executor and Trustee Company (Betco).

The court heard yesterday that Mr. DeGroote became a client of the bank after he arrived in Bermuda. Mrs. MacMillan was already a client.

Mr. Hall said the bank regarded Mr. DeGroote as an "extremely valued client'' and rightly would have expected to "bend over backwards'' to help him.

But Betco representatives may have had "excessive zeal'' in getting the deal done, Mr. Hall said.

"Betco promoted the interests of Mr. DeGroote over those of Mrs. MacMillan.'' Questioned by Mr. Hall, Mr. DeGroote agreed he came from a poor family, unlike Mrs. MacMillan.

He agreed he had been "very fortunate'' in business, and that a banker's estimate had put his net worth at more than $100 million.

And he agreed one of his references for a Bermuda work permit was former Governor Sir Edward Leather.

But he denied equating wealth with power.

He said he found Mrs. MacMillan gracious and elegant, and developed a cordial relationship with her during negotiations.

Mr. Hall asked him if she was as good a business person as he was. Mr.

DeGroote replied: "She was able to handle herself very well and increase the price of Perot's Island on a step-by-step basis. I don't think she lacked any business acumen in that way.'' Questioned by his own lawyer, Mr. John Riihiluoma, Mr. DeGroote said he had believed the deal on buying Perot's Island was "progressing excellently''.

His reaction was "absolute shock and disbelief'' when told 25 days before completion of the deal that Mrs. MacMillan "preferred not to proceed''.

His attitude was that "a contract was a contract'', he told the court. "I live up to my contracts. Obviously, I hoped that she lived up to her contract.''