Court hears of possible conflict of interest
seller in the sale of Perot's Island, it was revealed in Supreme Court yesterday.
American grain heiress Mrs. Marion MacMillan wants out of an $8.5-million deal she signed to sell the island retreat in Riddell's Bay to Canadian businessman Mr. Michael DeGroote.
Mr. DeGroote has gone to court to have his contract enforced.
Yesterday, Government Senator Jerome Dill of Appleby, Spurling and Kempe said he was unaware of memoranda written by other lawyers in the firm which suggested a link between them and Mr. DeGroote in the sale of Perot's Island.
Mr. Dill was the lawyer for Mrs. MacMillan during negotiations with Mr.
DeGroote in 1990 and 1991.
Mr. Richard Spurling, a partner in the firm, had acted for Mr. DeGroote on commercial and corporate matters, Mr. Dill told court.
Earlier, court was told Mr. DeGroote retained lawyer Mr. Harry Kessaram of Cox and Wilkinson to handle the sale in October of 1990 after the question of a potential conflict at AS&K was raised.
Yesterday, Sen. Dill said he had no knowledge of a November 2, 1990 AS&K memorandum filed in court which refers to Mr. Spurling asking him to move the deal along.
Nor did Sen. Dill recall Mr. Spurling making such a comment, he testified.
"Who would you look to for instructions on speeding up matters?'' asked Mr.
Robin McMillan of Hall and Associates, the firm which has been handling Mrs.
MacMillan's Bermuda affairs since she left Appleby, Spurling and Kempe.
"Mrs. MacMillan,'' Sen. Dill replied.
A November 7, 1990 memorandum from AS&K conveyances unit manager Mr.
Christopher Mallie to Mr. Spurling was titled "Mr. DeGroote's purchase of Perot's Island.'' In it, Mr. Mallie refers to a matter arising "which might conceivably cause Mr. DeGroote some problem.'' Sen. Dill testified he never saw that memo, either.
Another October, 1990 memorandum from Mr. Mallie and Mr. Spurling makes reference to whether a purchase of the island through a trustee might keep Mr.
DeGroote from paying as much duty on the transaction.
Sen. Dill testified he had no idea other lawyers in the firm had turned their mind to such matters.
As the deal came close to fruition, Sen. Dill relied more heavily on Mr.
Mallie to act on Mrs. MacMillan's behalf, due to his expertise in conveyances, court heard earlier.
Under cross-examination by Mr. John Riihiluoma, lawyer for Mr. DeGroote, Sen.
Dill said he knew of no instances when information confidential to Mrs.
MacMillan was passed to Mr. DeGroote.
Sen. Dill initially said he was unaware that AS&K had obtained Mr. DeGroote's licence to purchase Perot's Island from the Immigration Department. But he later agreed with Mr. Riihiluoma that by December 11, 1990 both he and Mrs.
MacMillan's US attorney Mr. Bob Engel were aware of a plan to proceed in that way.
Sen. Dill testified AS&K, where he is now a partner but was not at the time of the Perot's Island deal, is Bermuda's largest legal firm.