A Bermudian businessman who claims he never accepted an out-of-court settlement from the Bank of Bermuda over a fraud case actually gave his consent to conclude the deal two years ago, Bermuda Supreme Court has ruled.

In his judgement dated June 16, 2010, Chief Justice Richard Ground QC wrote that an e-mail from Dilton Robinson's former lawyer Tony Bueno QC on November 14, 2008 represented a final settlement which was authorised by Mr. Robinson and was binding.

The Chief Justice said he did not consider the settlement to be subject to a contract or condition that Mr. Robinson and his wife, Sharon, entered into a formal Deed of Settlement.

"As the settlement was, in my judgement, concluded with the plaintiff's actual authority, no question of its fairness or otherwise properly arises, but if it did then I would have seen no reason to interfere with it, there being no injustice to the plaintiff in what is, when properly considered, a favourable outcome," he wrote.

The bank made an application by summons on April 7, 2009 seeking an order staying the action on the grounds that the two parties reached a binding settlement agreement through their lawyers.

Of the eight separate actions between the two parties, three were brought against Mr. and Mrs. Robinson by the bank and resulted in judgements against them, while four were brought by Mr. Robinson and one by his wife, with the alleged compromise as set out in the application meant to resolve the matter and, in particular, secure the dismissal on terms of the claims brought by The Robinsons.

The dispute between Mr. Robinson and the bank started with a $1.7 million loan he took out in June 1992 to refinance his debts.

He claimed the bank pressurised him and his wife into the loan while knowingly having information he would be in default.

Mr. Robinson's lawyers say e-mail correspondence shows bank employees were aware his name could be linked to a criminal investigation but proceeded with the transaction.

They then disclosed personal financial information to the Police and also Mr. Robinson's boss, David Gutteridge. He was fired from his job in July 1992.

Mr. Robinson was never interviewed by Police or prosecuted for any offence. But after losing his job he defaulted on the loan and his house in Town Hill Road, Flatts, was possessed in 1996 as security.

Two years later he issued a lawsuit against the Bank of Bermuda for breach of trust and confidentiality.

In 2007 Court of Appeal judge Charles Etta-Simmons dismissed the case, saying the statute of limitations had expired. But she said another lawsuit by Mr. Robinson, 'no. 241 Action' in 2002, which adds allegations of fraud, misrepresentation, breach of fiduciary duty and sales at undervalue, could continue.

While awaiting a hearing Mr. Robinson's lawyers and the bank's legal team began negotiating an agreement for "complete settlement of all claims", in August 2008.

The Chief Justice, in his judgement, said he would listen to the two parties before deciding whether to grant further relief on the bank's summons of April 7, 2009 as well as extending orders protecting the confidentiality of the agreement at the bank's request, and again hearing both parties on costs.