of Appeal has ruled.

Thursday's judgment -- which may be appealed to the Privy Council in London -- legalises a two-storey addition to the ACE Building on Woodbourne Avenue.

The Court of Appeal overturned the November ruling of Puisne Judge the Hon.

Mr. Justice Meerabux, who sided with neighbour Mr. David Barber.

The building expansion was completed before the Supreme Court delivered its ruling last fall, and lawyers for Mr. Barber were arguing that the top two storeys should be dismantled.

Mr. Alan Dunch, representing Mr. Barber, said Environment Minister the Hon.

Gerald Simons had no right to rule that the ACE Building could be extended to five storeys. The Development Applications Board had already ruled the addition was against planning regulations.

But Mr. Saul Froomkin, representing building owner Scarborough Property Holdings Ltd., said the judges accepted his argument that the DAB was bound by the development plan, but the Minister was not.

"He was entitled to go outside the plan,'' Mr. Froomkin told The Royal Gazette yesterday. "Although he had to consider (the plan), he wasn't slavishly bound to follow it.'' Mr. Froomkin said he "never contemplated'' that the addition would have to be dismantled. "The clients are pleased and we're pleased,'' he said.

Mr. Dunch was off the Island yesterday. Mr. Barber said he was "very disappointed'', but wanted to study a written judgment expected next week. He would meet with Mr. Dunch to discuss a possible appeal to the Privy Council.

Mr. Barber, who has lived at `Jaracanda', says the additions overshadow his home and invade his privacy.

While the court case was expensive, "I'm quite prepared to put everything into it so that we can at least enjoy the last few years of our lives'', Mr.

Barber said. "We were very happy here for 33 years.'' In arguments before the court last week, Mr. Dunch warned Bermuda would see "a new era in planning'' if the appeal was allowed. The Minister "could in theory approve an office block in Par-la-Ville Park'', he said.

Lawyers for the appellants -- the Minister and Scarborough -- argued that while the DAB was bound by the Bermuda Plan that prohibits buildings over four storeys -- the minister was not.

Solicitor General Mr. Barrie Meade, representing the Minister, argued the minister had "wide discretion'' in the matter.

Mr. Dunch argued the Bermuda Plan was not policy, but law. Like the DAB, the Minister had to remain within its parameters.