Puisne Judge Vincent Meerabux this morning under orders to answer questions requesting the names of sources for stories he wrote on Bermuda Fire & Marine Insurance Co. Ltd.

Reporter David Marchant yesterday refused to reveal the sources during his testimony in Supreme Court. Mr. Marchant reported for The Royal Gazette until 1993, and later for the Bermuda Sun. He now publishes a newsletter on Bermuda from Miami.

He was giving evidence on behalf of Bermuda Fire's liquidators about a November, 1993 interview he did with Charles Collis, the company's chairman.

The issue over confidentiality of sources arose when Robin Potts, who is defending Bermuda Fire's five former finance committee directors, asked Mr.

Marchant about the names of the sources for related information in the story, and subsequent stories.

Mr. Marchant refused to reveal the sources, stating that he had promised at the time not to reveal their names in return for information. Mr. Potts then asked him again, stating that the information was not privileged.

Mr. Marchant could be cited for contempt of court for refusing to answer questions. He said he needed to take legal advice before responding. Mr.

Justice Meerabux adjourned the Bermuda Fire case until today.

In a story published about his interview with Mr. Collis, Mr. Marchant referred to Bermuda Fire's creditors and their views of the 1991 reorganisation of the company.

Mr. Marchant refused to answer questions on which creditors he had interviewed.

In another story published in Inside Bermuda newsletter, he wrote that Mr.

Collis' death last year meant that the deposition he gave liquidators "in which he is believed to have performed poorly -- cannot be produced as evidence at the trial since it cannot be subject to cross-examination''.

Mr. Marchant refused to answer Mr. Potts' question about whether he had received the information about the deposition from Bermuda Fire's liquidators at Ernst & Young.

Mr. Collis' witness statement is going to be introduced as evidence in the case.

Mr. Potts said he needed the information in regards to his questions about Mr.

Marchant's credibility as a witness.

Earlier he focused on statements in the stories Mr. Marchant said had been made by Mr. Collis.

Related story: Page 25 Reporter's refusal In a Royal Gazette story Mr. Marchant wrote Mr. Collis had stated the company was "unable to be sued on claims for the future. No suit can be made for these sums. They are not effective debts.'' Mr. Potts then questioned later stories in The Bermuda Sun and Inside Bermuda in which Mr. Marchant wrote that Mr. Collis had stated in the interview Bermuda Fire was not obligated to leave reserves for incurred but not reported (IBNR) claims.

Mr. Potts then pointed to a section in the company's 1990 annual report which stated that such reserves had been made. The liquidators claim that during the 1991 reorganisation Bermuda Fire didn't make IBNR reserves for future liabilities on pollution and bad debt.

BUSINESS BUC