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Hall declared bankrupt, banned from practising law

Leading lawyer Julian Hall was officially declared bankrupt yesterday.As a bankrupt, Mr. Hall will now be banned under the Bermuda Bar Act from practising as a lawyer.

Leading lawyer Julian Hall was officially declared bankrupt yesterday.

As a bankrupt, Mr. Hall will now be banned under the Bermuda Bar Act from practising as a lawyer.

Mr. Hall was accused of consistently dodging his responsibilities to creditors by failing to provide a detailed statement of his affairs in an attempt to put off the "evil day'' when he would be declared bankrupt.

Puisne Judge Charles-Etta Simmons said Mr. Hall had not fulfilled his promise made in court last month to provide a detailed statement of his financial affairs.

The court heard Mr. Hall, who by his own admission has debts of $1.9 million and assets of $135,000, submitted a statement to Supreme Court at 4.34 p.m. on Tuesday.

The statement was described by lawyer Alan Dunch as a "blown up extract of the bankruptcy rules and for the most part he's just written `none'.'' Mr. Hall, a former Progressive Labour Party MP, has already been ordered to pay a former client, Canadian widow Betty Lorraine McMahon, $1.6 million plus seven percent interest, and received two bankruptcy receiving orders by the courts.

Mr. Dunch, acting for the joint receivers of Mrs. McMahon, persuaded Ms Justice Simmons to adjudge Mr. Hall bankrupt because he had failed to provide a detailed statement of his assets.

The case has dragged on for more than two years as Mr. Hall has obtained a series of adjournments or failed to turn up in court.

Ms Justice Simmons allowed Mr. Hall a further adjournment on December 9 when the lawyer said his financial advisors told him he needed further time "when a better picture of one company's position'' would be known.

Mr. Dunch said yesterday: "Mr. Hall has consistently attempted to avoid his financial responsibilities and my client's contention has always been that it would only be at the point when his livelihood would actually be put in peril that he would come to the wicket and face up to his responsibilities.

"From the facts here, my clients fears were well-founded. I suspect in filling out this document the way he has, Mr. Hall has now assumed that he has fulfilled what your Ladyship required and put off the evil day yet again.'' Lawyer Hall declared bankrupt in Mr. Hall's purported statement of affairs that even remotely approximates the promise that he held out in his affidavit of December 9.

"The document f iled in court at the very last minute in the crudest of forms does not in my view abide by the order made by the court. To delay this matter any further would go beyond empathy for Mr. Hall and would lean towards complicity.

"I cannot do that to this office that I hold or to Mr. Hall's creditor.

Therefore the motion herein filed pursuant to rule 188 of the Bankruptcy rules is granted.'' A public examination of Mr. Hall's affairs, allowing creditors to ask him questions, will now be convened, although it is expected to be formally opened and adjourned. The Official Receiver will convene a meeting of creditors to appoint a trustee in bankruptcy to administer Mr. Hall's affairs and appoint a committee of inspection from the creditors.

The trustee will establish Mr. Hall's liabilities, collect assets, and pay creditors with any available money.

Mr. Dunch said with interest accrued, Mr. Hall's debts were around $2 million.

Mr. Dunch said: "The document that purports, I assume, to be his statement of affairs is so clearly lacking in detail as to cause one to wonder why it wasn't actually filed when these applications were initially made.

"In short, this is not a statement of affairs such as is contemplated by yourself and me on December 9 based on the representation by Mr. Hall when he made clear in his oral submission that he needed time to prepare a detailed statement because he had been advised by his accountants and accounts in companies he had an income interest that he needed more time to put it together.

"There is nothing in these documents that demonstrates any interest in matters corporate and the document singularly lacks detail in terms of income.

"The one thing that is clear is that Mr. Hall, on his own admission, is hopelessly bankrupt.

"There should be a view to sort out his future affairs so that hopefully his creditors can see some recovery.'' He added that his client was a "realist'' and did not expect to receive all payment immediately, but "since this judgment in June 1997 nothing has been done by Mr. Hall to make good''.

Mr. Hall did not appear in court. His lawyer, Michelle St. Jane, said: "I find myself without instructions. Mr. Hall asked me to appear today with a statement of affairs, but he has not turned up himself. That is all I can offer.'' Julian Hall: The ex-MP was not in court