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Privy Council `reserves' burger decision

The burger battle is set to sizzle on as London's Law Lords yesterday took time to chew over arguments for and against Big Macs in Bermuda.

And it could take up to six months before Bermuda's last court of appeal -- the Privy Council -- serves up a final decision on the long-running row.

The Privy Council reserved judgment on a plea from Grape Bay Ltd. to overturn a law banning McDonald's and other fast food franchises on the Island.

Barristers Mark Diel and Ronnie Myers represented Grape Bay -- controlled by ex-Premier Sir John Swan and United Bermuda Party Sen. Maxwell Burgess -- in the two-day hearing. Mr. Diel said last night: "Their Lordships reserved judgment. It could be a month, it could be six months before they deliver a judgment.'' And he added he could not even speculate on the time it will take for the panel headed by Lord Hoffman to come to a decision.

Privy Council reserves judgment in burger case matter for their Lordships.'' Solicitor General William Pearce, representing Government in London, completed his case yesterday and Mr. Diel and Mr. Myers summed up their case before the court rose.

Mr. Pearce could not be contacted for comment.

But the Privy Council hearing was set to re-run the same basic arguments already heard in the Island's Supreme Court and Court of Appeal.

Government insisted that the Prohibited Restaurants Act -- which had the effect of blocking Grape Bay's plans to open McDonald's restaurants in Bermuda -- was legal and did not violate the Constitution by depriving the firm of property.

Grape Bay's team claimed that letters of intent between Grape Bay, McDonald's in the US and their agents were property and that the company had been deprived of that property without compensation -- contrary to the Constitution.

They also argued that blocking McDonald's from opening in Bermuda was not in the public interest.

The Bermuda Court of Appeal knocked Big Macs off the menu almost a year ago when it reversed an earlier Supreme Court decision in favour of Grape Bay. The Prohibited Restaurants Act was pushed through in 1996 by then-Government MP Ann Carwright DeCouto and four other UBP rebels, with support from the then- Opposition Progressive Labour Party.

Senate used its powers to put the Act on hold for a year -- but the rebels and the PLP won another vote in 1997.

The Supreme Court later ruled that the letters of intent were property and protected, quashing the anti-burger law.

But the Court of Appeal did not back that view. It said it had not been proved Grape Bay had been deprived of property without compensation.

Privy Council reserves judgment in burger case Mr. Diel said: "I'm afraid I can't. It's literally a matter for their Lordships.'' Solicitor General William Pearce, representing Government in London, completed his case yesterday and Mr. Diel and Mr. Myers summed up their case before the court rose.

Mr. Pearce could not be contacted for comment.

But the Privy Council hearing was set to re-run the same basic arguments already heard in the Island's Supreme Court and Court of Appeal.

Government insisted that the Prohibited Restaurants Act -- which had the effect of blocking Grape Bay's plans to open McDonald's restaurants in Bermuda -- was legal and did not violate the Constitution by depriving the firm of property.

Grape Bay's team claimed that letters of intent between Grape Bay, McDonald's in the US and their agents were property and that the company had been deprived of that property without compensation -- contrary to the Constitution.

They also argued that blocking McDonald's from opening in Bermuda was not in the public interest.

The Bermuda Court of Appeal knocked Big Macs off the menu almost a year ago when it reversed an earlier Supreme Court decision in favour of Grape Bay. The Prohibited Restaurants Act was pushed through in 1996 by then-Government MP Ann Carwright DeCouto and four other UBP rebels, with support from the then- Opposition Progressive Labour Party.

Senate used its powers to put the Act on hold for a year -- but the rebels and the PLP won another vote in 1997.

The Supreme Court later ruled that the letters of intent were property and protected, quashing the anti-burger law.

But the Court of Appeal did not back that view. It said it had not been proved Grape Bay had been deprived of property without compensation.