The Bank of Bermuda has suffered a setback in its long running legal dispute with former customer Dilton Robinson when a judge ruled last month that he could add fraud and other allegations to his statement of claim.

But the bank is vowing resistance and downplaying the significance of the development.

"An interim decision has been made on a procedural matter and our attorneys are currently pursuing an appeal," the bank said in a written response to requests for comment. "This decision was not based on and did not consider the merits of the claim, which the Bank will continue to defend vigorously. As the case is still before the courts, however, we are unable to comment any further."

But the decision means a major hurdle has been cleared for the case to proceed to trial.

The bank had argued that a six year statute of limitation had passed. But Puisne Judge Vincent Meerabux dismissed that argument in favour of Mr. Robinson saying that information which was previously not available to him only surfaced relatively recently.

Mr. Robinson and the Bank of Bermuda have been engaged in a protracted legal battle since the early 1990s.

In 1998 he filed a writ alleging breach of fiduciary duty and breach of confidentiality against the Bank.

The matter concerns a $1.3 million loan he took from the bank in the early 1990s. Soon after, he says he lost his job as assistant manager of mortgage at L.P. Gutteridge and defaulted on the loan.

Mr. Robinson is being represented by a legal team led by UK lawyer John Roberts QC and local lawyer Claire Hatcher. Law firm Appleby, Spurling and Kempe is representing the Bank.