A report in the latest InsideBermuda - a monthly newsletter on Bermuda's off shore business from Florida-based David Marchant - said Mutual Risk Management (MRM), a Bermuda-based company, is being sued by a US law firm disputing legal fees.

MRM CEO Robert Mulderig told The Royal Gazette that the story relates to a minor dispute between its US subsidiary - Target Capital - and a California law firm.

Mr. Mulderig explained that one element of the MRM's business is to write insurance for law firms.

In order to defend legal malpractice claims against law firms insured by Target Capital, the company hired the law firm of Hollins and Fields as defence.

Mr. Mulderig said in the course of that defence, a dispute developed - between Target Capital and Hollins and Fields - on what was billed and the quality of work performed by the law firm.

Speaking of the dispute, Mr. Mulderig said it was minor: "The whole amount of issue was less than $200,000."

The dispute went to court, which Mr. Mulderig said is required under the mandatory binding arbitration of the California Bar Association.

The outcome of that dispute was the court awarding $192,000, in favour of the complainant, Hollins and Fields . Mr. Mulderig said the company have paid the award.

Following this judgement, however, Hollins and Fields have continued their lawsuit, and Mr. Mulderig said they have come up with "wild accusations", against MRM and its subsidiaries.

Those "accusations", according to the Inside Bermuda report, includes allegations that the defendants engaged in attempted extortion and false reporting.

Of this continued suit from Hollins and Fields, Mr. Mulderig said: "We expect the suit to be dismissed; it is completely without merit. We expect it will just go away."