Bermuda's Court of Appeal yesterday granted reinsurer Kemper Re's application to go to the Privy Council, the latest round in the legal battle involving the move from Massachusetts to Bermuda by the insolvent Electric Mutual Liability Insurance Co. (EMLICO).

Last week the Court of Appeal ruled it had no jurisdiction to hear an appeal by Kemper Re over a Supreme Court decision that set aside an earlier approval for judicial review of Government's 1995 decison to allow EMLICO to move to Bermuda. Kemper will now file papers appealing last week's decision before the Privy Council in London, Bermuda's highest court.

Kemper Re's original case judicial review is against the Minister of Finance and the Registrar of Companies decision to allow EMLICO on the Island. Kemper claims EMLICO was insolvent before it made the move and should not have been allowed to relocate here from Massachusetts.

EMLICO moved to Bermuda in July, 1995 and within three months declared itself insolvent. Reinsurers, including Kemper, claimed EMLICO deliberately moved to Bermuda for the purpose of liquidation because the laws here favoured the company against the reinsurers, more so than if it had stayed in the US.

EMLICO is General Electric Co.'s liability insurer and holds many of its pollution policies which could eventually cost the reinsurers millions of dollars during the winding up proceedings.

EMLICO's joint liquidators include David Lines and Peter Mitchell of Coopers & Lybrand Bermuda.

David Lines COURTS CTS