Frederick W. Yearwood.

The settlement, reached outside of court, in turn allows Brunswick to make a counterclaim against Mr. Yearwood for losses shareholders accuse him of causing to the company, Brunswick was in danger of getting a Court of Appeal judgment against the company, in effect giving summary judgment for the amount to Mr. Yearwood.

Lawyers for the two sides spent two days before the Court of Appeal last week before announcing a settlement had been reached.

Brunswick has less than a month to file the counterclaim. If the company doesn't file, interest on the debt gets racked up at seven percent per annum together with costs. The debt will weigh heavily on Brunswick if the company doesn't win the counterclaim, which is apparently for more than the debt. The company owns the Brunswick building on Brunswick St. and a building by the same name on Front Street.

Brunswick's shareholders are alleging Mr. Yearwood attempted to gain control of the company through getting the company deeper into debt with him. They're alleging he was "negligent'' and exercised "undue influence'' in getting the company deeper into financial difficulties.

Brunswick lawyer Ian Kawaley made the allegations before the Court of Appeal last week as a indication of the claims that will be made in the counter claim.

Mr. Kawaley was appearing for Brunswick before the Appeal Court judges to fight against a summary judgment for the amount. Mr. Yearwood was appealing an earlier decision by a Supreme Court judge not to give him summary judgment for the debt. Mr. Yearwood, a shareholder in the company, was vice president at the time a decision was made to buy the Front Street building in 1989. Soon afterward Brunswick Co. was apparently going through financial difficulties and Mr. Yearwood made loans to the company.

Part of the dispute centres around whether there had been an oral agreements between Mr. Yearwood and company directors over money subsequently received by Brunswick Co.

Ian Kawaley