protector of a trust to replace trustees.

The decision by Puisne Judge the Hon. Mr. Justice Meerabux, was considered to be important to Bermuda's future as a trust jurisdiction because it endorsed the true intentions of the settlor -- the person who created the trust.

Cotrol of shares held by the trtusts in question were also considered potentially pivotal to control of multi-billion dollar Bermuda-registered company, Corange Ltd.

The decision actually solidifies the role of the protector of a trust, who is normally appointed by the settlor because such a settlor actually knows and trusts the individual they are appointing as a protector. The settlor is satisfied the protector is someone who would be able to ensure that the settlor's original intentions are safeguarded.

The court ordered that Grosvenor Trust Company Ltd., represented by lawyer, Mr. John Cooper, had been duly and legitimately appointed by the protector, German lawyer, Dr. Jurgen von Knieriem, as the new trustee of two trusts set up by Mr. Curt Engelhorn.

Mr. Engelhorn is the largest shareholder of the multi-billion dollar pharmaceutical and health care concern, Corange Ltd., a holding company for Boehringer Mannheim and the DePuy Group of Companies, that originated in Germany, and now operate globally.

Almost 30 percent of Corange Ltd., a company that in 1992 had $3.2 billion in sales, is tied up in the two trusts.

Dr. Knieriem, who was successfully represented by Milligan-Whyte and Smith lawyer, Mr. Ian Kawaley, and Mr. Nicholas Patten QC, later said: "It's a full victory.'' Dr. Knieriem made his remark as he made his way out of the court to inform Mr.

Engelhorn, who is on the Island for next Friday's special general meeting of Corange's board.

Observers say that the court ruling will reassure others considering establishing trusts here that their interests would be protected.

But no sooner had the decision been handed down, lawyers began a discussion that later was adjourned, on costs, and who the court deems must pay them.

Three Queens Counsel had argued the case, before flying back to Britain on Thursday night, just hours after completing their submissions to the court.

Arguments over who will pay for the costly litigation were left to local lawyers.

The Bermuda Trust Company Limited (BTCL) had made it clear that their challenge to the trustee change was only to seek the direction of the court in this matter. Their lawyer, Mr. Andrew Martin of Mello, Hollis, Jones & Martin, resisted Mr. Kawaley's application for costs, saying that as trustees, BTCL had a duty to ensure the transfer was proper. He said it would be wrong for the former trustees to be penalised.

Mr. Kawaley said it would be unusual for Dr. Knieriem, having essentially won the case, to now have to foot the legal bills. Mr. Cooper said Grosvenor Trust Company also saw no reason why it would be required to pay legal costs.

There is a question too, as to what role the trusts themselves could play in the matter of legal costs.

Mr. Justice Meerabux decided to delay the matter and entertain submissions on costs after he has handed down his written decision.