mid-October of 1990 that she did not want the law firm to act for both her and Canadian millionaire Mr. Michael DeGroote in the proposed sale of Perot's Island, Supreme Court was told yesterday.

Mr. Christopher Malley, manager of the AS&K property department, testified that until that time "my understanding was that ... we were to represent both sides in the transaction.'' Mrs. MacMillan wants out of a deal she signed to sell Mr. DeGroote the island retreat in Riddell's Bay for $8.5 million. Mr. DeGroote has gone to court to seal his claim to the property.

Mr. Malley told the court it was "accepted practice'' in Bermuda for the same company to represent both the buyer and the seller in a real estate sale, though elsewhere it would be considered "somewhat unorthodox.'' Having practised property law in the United Kingdom, "it's not something that I was personally used to before my arrival here,'' he told the court.

While AS&K awaited instructions from Mrs. MacMillan on whether the firm could also represent Mr. DeGroote, "quite naturally, my hope was that we would be able to continue to represent both sides,'' Mr. Malley said.

"It does tend to make the transaction speedy,'' and "there is obviously the question of being able to charge two lots of fees.'' Earlier in the day, Government Senator Jerome Dill of AS&K testified that although Mrs. MacMillan sought other counsel to help her get out of the Perot's Island deal, she continues to use AS&K on other legal matters.