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Court delays McDonald's decision

Court of Appeal president Sir James Astwood told the legal team representing would-be burger barons Grape Bay Ltd. and Solicitor General William Pearce that a ruling on whether McDonald's could open in Bermuda could be expected "in early June --

told warring lawyers yesterday.

Court of Appeal president Sir James Astwood told the legal team representing would-be burger barons Grape Bay Ltd. and Solicitor General William Pearce that a ruling on whether McDonald's could open in Bermuda could be expected "in early June -- the first day of sitting of next term.'' The Court of Appeal heard nearly a week of evidence as Mr. Pearce and Jamaican constitutional lawyer Lloyd Barnett fought to overturn an earlier Supreme Court decision that an anti-burger law which effectively banned fast food franchises with a foreign flavour from Bermuda was unconstitutional.

The surprise end to a case expected to run perhaps to Monday came just half-an-hour after Mr. Pearce and Jamaican constitutional expert Dr. Lloyd Barnett started their final reply to two days of argument from lawyer Mark Diel, backed by Ronald Myers.

Under English-style law, Mr. Pearce and Dr. Barnett were restricted to replying only on new points of law raised by the Grape Bay barristers.

Dr. Barnett confined himself to arguments on the precise definition of a restaurant.

In the successful Supreme Court apppeal and in the Court of Appeal this week, Mr. Diel argued that McDonald's was not a restaurant under the Act.

But Dr. Barnett argued that Mr. Diel had also said that McDonald's was a restaurant -- but that the Act was illegal, so it could have no effect.

The case was adjourned for the judges to consider their decision on the long-running row over McDonald's.

Mr. Pearce said afterwards he was not disappointed at a delay in a decision from the court.

He added: "That's quite a good turnaround time, actually. It's not very far away.'' This week's legal battle is the latest in a series of clashes over the Prohibited Restaurants Act, brought to the House of Assembly after Grape Bay Ltd., controlled by ex-United Bermuda Party Premier Sir John Swan and Government backbencher Maxwell Burgess.

A rebel group of Government MPs originally combined with the Opposition PLP to force the Act through in 1996 -- but Senate used its powers to vote it down for 12 months.

The Act was finally signed into law last August by Governor Thorold Masefield last August, prompting the Supreme Court challenge by Grape Bay's lawyers.

Puisne Judge Vincent Meerabux ruled then that the law should be axed because contracts held by Grape Bay with McDonald's and others were property -- and property rights are protected under the Bermuda Constitution.

But this week, Mr. Pearce and Dr. Barnett argued that all Grape Bay had were letters of agreement and a full contract was "subject to negotiation.'' He added that meant the firm had not been deprived of property rights, especially as they could still open a restaurant -- as long as it was not a foreign fast food franchise.

He added that the McDonald's corporate set-up was such that the firm could not avoid doing business in Bermuda, even though Grape Bay was 100 percent Bermudian-owned.

Mr. Diel, however, countered that that the agreements must have been considered binding by the Bermuda Monetary Authority and the Ministry of Finance when Grape Bay was allowed to go ahead with its plans.

And he said McDonald's sending products to Bermuda was not "carrying on business'' -- and added if it was, it would create a "nightmare'' for grocery stores which deal with thousands of suppliers, all of whom could be said to be doing business in Bermuda.