An Island legal battle over a mystery sick bug at a now-closed hotel looks set to be settled.

It is understood around 30 people have agreed four-figure compensation cheques after suffering sickness and diarrhoea during a Valentine's Day event at the former Marriott Castle Harbour hotel in 1998.

But the long-running legal battle could continue off the Island for some time after lawyers in New York re-started proceedings against the hotel's insurers.

Several hundred people were affected by the bug, which was caused by sewage leaking into the hotel's water system, and already many of those have settled for payouts thought to be worth a few thousand dollars.

Lawyer Dennis Dwyer, who was acting for the 30 locals affected by the bug, said the matter was in the process of being resolved.

And lawyer Jai Pachai, acting for the hotel's insurers, said he was hopeful it would be sorted out soon.

The majority of the complainants have so far accepted the offer and lawyers are waiting to hear from the remainder, two of which are from the UK.

Another suit, filed by a Boston, Massachusetts law firm on behalf of another 23 people, has also just been settled for an undisclosed amount.

The New York suit, which was originally struck out of court, has recently been resurrected and looks set to haunt Marriott for some time to come.

It is understood the amounts settled for in the US are also in the realm of a few thousand dollars -- and nowhere near the millions of dollars previously mentioned.

The overseas lawsuits came after a judge ruled that compensation claims could be heard in the US, rather than Bermuda.

The sickness lasted several days and affected many of the 450 to 500 people at the hotel at the time.

The cause was eventually linked to contaminated water, causing people to vomit and have diarrhoea for up to two days.

Legal battle nears resolution It coincided with two charity events being held at the hotel, the Lobster Pot golf tournament and a dinner hosted by the Coalition for the Protection of Children.

Dozens of tourists staying the property were also hit by the bug.

The Castle Harbour hotel closed last December, after Marriott decided to pull out of Bermuda. There are plans for a five star Rosewood Hotel on the site.