Hotelier David Dodwell has settled a decade old dispute with a former US-based business partner Lee Koehler.

On July 14 last year, United States District Judge for the District of Maryland William Quarles dismissed Mr. Koehler?s complaint against Mr. Dodwell and also dismissed garnishment actions against his properties The Reefs Beach Club and Windward Properties of Nevis, on the basis that the two parties had agreed on a settlement.

The settlement terms were not disclosed, but the offshore newsletter Inside Bermuda reports that in a court filing six weeks before the dismissal, Mr. Dodwell indicated that his group had agreed to pay $475,000 to settle ?all claims between the parties?.

This is the third time the case has been closed in its lengthy history. It stems from budget over-runs incurred by Windward Properties while renovating an acquisition in Nevis.

Offshore Alert reports that Mr. Koehler?s initial complaint dates back to October 21 1992.

He alleged that Mr. Dodwell caused cost over-runs by failing to use his best efforts to complete the project within budget and also concealed the over-runs, preventing Mr. Koehler from restructuring the debt Windward Properties incurred as a result.

Mr. Koehler also advanced a claim for negligent misrepresentation. He alleged that Mr Dodwell falsely represented that he would pledge his stock in another corporation and thereby induced Mr. Koehler to pledge his own stock in that company.

In 1993, Mr. Koehler received a default judgement against Mr. Dodwell for $2,096,343. Offshore Bermuda reports that he then added The Reefs and Windward Properties to his action as he sought to collect on the judgement by garnishing their assets.

A default judgement was entered against The Reefs in 1996, but both it and the judgement against Mr. Dodwell were vacated in 1997 for lack of a jurisdiction.

Those judgements were later reinstated on appeal, but Inside Bermuda reports that in recent years the case became bogged down in jurisdiction arguments. The court was due to hold another jurisdiction hearing in July last year, but weeks before Mr. Dodwell applied for a motion to enforce a settlement that the parties had agreed to last February.

He said in court documents: ?After a lengthy session of face to face settlement negotiations held in Baltimore with representatives of the parties present a binding settlement was entered into.

?Subsequently (Mr. Koehler) has attempted to change the terms of the settlement and ultimately has refused to abide by the agreed settlement.?

Mr. Koehler opposed Mr. Dodwell?s application on the basis that no settlement had ever been achieved, but before the court could make its ruling, Judge Quarles was advised that all remaining disputes in the action had been settled and he dismissed the case.

He ordered each party to bear his own costs unless otherwise agreed. All open motions in the case were denied as moot.