Liquidator's lawyers finish calling material witnesses
Lawyers for the liquidator of Bermuda Fire & Marine Insurance Co. Ltd.
finished calling material witnesses yesterday in the Supreme Court fraud case.
As negotiated with the defendants witnesses giving expert evidence in the case will be called after all those involved directly with Bermuda Fire have concluded their testimony.
Ernst & Young partner John McKenna of Ernst & Young, appeared on the stand for less than an hour to affirm his role as Bermuda Fire's joint liquidator.
Prior to his appearance, Ernst & Young's lawyer Clare Montgomery and the defendants' lawyers negotiated what evidence he would give. Ernst Clare Montgomery had indicated she wanted to question him about the extent of pollution claims that had been accepted under the liquidation.
Ms Montgomery said she wanted the evidence in because opening submissions by the lawyers for the company's five former directors and BF&M Ltd. had cast doubt on whether such claims had been accepted.
Robin Potts, lawyer for the five former directors, argued that Mr. McKenna's evidence about what occurred after the creation of BF&M Ltd. in 1991 was irrelevant to the case.
He agreed with Ms Montgomery that the only issues at stake were whether Bermuda Fire was insolvent at the time of the share dividend in BF&M to the company's shareholders, and whether the five directors knew the company would become insolvent.
Subsequently, after negotiations, all sides agreed to strike out much of Mr.
McKenna's witness statement, given preliminary to his taking the stand at the trial.
Lawyers finish calling witnesses Earlier in the day, the former head of Bermuda Fire's international division concluded 11 days in the witness box. Keith White, who was in charge of the division until he left to join ACE Ltd. in 1989, gave evidence over the course of his testimony that he believed Bermuda Fire had properly allocated reserves for potential losses.
Independent Senator Jeanette Cannonier will appear as the first witness called by defendant BF&M Ltd. Ms Cannonier is a former Bermuda Fire director.
The trial resumes tomorrow as Ms Cannonier sits in the Senate today.