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Aviser believed MacMillan wied to keep luxury island

accepted a $8.5-million offer for Perot's Island in October, 1990, Supreme Court was told yesterday.

Mr. Bob Engel testified that in late September of the same year, "I know in general that she wanted to stay on the island'', and she was not anxious to sell at any price.

Mr. Engel, described as Mrs. MacMillan's principal adviser, said under cross-examination that he did not recall the details of what Mrs. MacMillan earlier described as a lengthy conversation with him before she accepted the offer.

Mrs. MacMillan wants out of the deal she signed to sell the island retreat in Riddell's Bay to Canadian millionaire Mr. Michael DeGroote. He, in turn, has gone to court to try to force the sale.

Mr. Mark Diel, representing the Bank of Butterfield Executor and Trustee Co.

Ltd. (Betco), cross-examined Mr. Engel on his statement on Tuesday that he was "baffled'' when Mrs. MacMillan's Bermuda law firm of Appleby, Spurling and Kempe included clauses dealing with the realtors' commissions in a proposed sales agreement.

Ms Jonelle White of Betco was Mrs. MacMillan's realtor.

He said the proposed agent protection clauses heightened his concerns about the fact AS&K banked at The Bank of Butterfield and the bank was one of AS&K's clients.

Lawyers at AS&K were "suggesting clauses to us that worked only in my judgment to the benefit of the broker,'' Mr. Engel said on Tuesday.

But yesterday, Mr. Diel cited correspondence which described a purchase default clause which baffled Mr. Engel as "a standard title clause included in most Bermuda contracts''.

Mr. Diel also suggested to Mr. Engel that since Perot's Island had officially been taken off the market in August of 1990, and no other listing agreement was approved, realtors had no protection for their commissions outside what was to be included in the sales agreement.

"Maybe they were not protected,'' Mr. Engel said of the real estate agents.

"But without explanation, that (type of clause) is not supposed to come from our counsel, and there was never a discussion on that point.'' Mr. Engel also testified he had no problem with information on renovations being passed on to Mr. DeGroote by Ms White. Mr. Gordon Harris of Woodbourne Associates Ltd. had testified he was annoyed to learn Ms White had passed a list of proposed renovation to agents for Mr. DeGroote.