the case ended before the year-end, despite saying he was too stressed to continue.

It is thought the daily rate would have made him higher paid than the entire three-man Bermuda Appeal Court put together.

The Royal Gazette has obtained a leaked letter from Mr. Mitchell to the Governor dated February 27, detailing his demands which were rejected March 13 when he was told that his three-year contract would not be renewed in November.

Last night Mr. Mitchell defended his bid for a $300,000-a-year salary.

Asked if it was extortionate Mr. Mitchell told The Royal Gazette : "It's a new bargaining position, Government put me in this position.

"We are big boys and it's a big world.

"They asked me what my terms were. They never came back to me. Extortionate? Maybe so, but it's their bloody problem. Not mine.'' Judge's demands rejected He said the Governor Thorold Masefield had earlier told him it could not find a suitable replacement and asked him what his terms would be to finish the case despite his keenness to leave.

Mitchell told the packed court room that Government had enough time to negotiate with him before his contract expired on November 30 and to improve his terms so he could continue hearing the Thyssen case.

He said it shouldn't have been his responsibility to name his terms. It should have been the Government who suggested a new offer.

He said: "Who's responsible for running the judicial system here? "If the terms were extortionate they never told me that. It's awfully nice to blame the other guy.'' And he said his $300,000 price-tag would have been "utterly insignificant to what's been thrown away on the case.'' "Did they think about what they were doing or was it just a knee-jerk reaction?'' Earlier Mr. Mitchell had told a packed court room, as he announced his resignation from the case, that he had been mislead over the terms of his contract and had tried to leave immediately after his three-year contract began in December 1998.

He said: "Simply put, I knew and accepted what my salary would be, but I had been given incorrect information about how much I would have to spend on housing.'' "I was appalled and said so.'' However one source close to the case said Mr. Mitchell had been difficult from the outset and had quickly negotiated a $1,000-a-month housing allowance despite being on a $117,227-a-year salary -- the standard judge's salary.

The Royal Gazette understands Mr. Mitchell and his wife were consistently unhappy with accommodation found for them and were in several properties before landing up in a plush quarters at the former Lantana hotel site in Somerset.

But Mr. Mitchell said Government had told him he would have to only spend 25 percent of his income to find a three-bed house near the courts.

He said last night: "That's $2,300 a month. You can't get that in Bermuda.'' He said he had been given an "extremely modest'' downstairs apartment when he first arrived and had then been put in accommodation at Sea Cliffs in South Shore Road before landing up in Somerset.

But Mr. Mitchell had also told yesterday's court that he was quitting the case, stating he had been under considerable strain both physically and mentally.

He added: "To be blunt I have had enough.'' Deputy Governor Tim Gurney office said: "Mr. Justice Mitchell made the reasons for his action very clear in the statement he made in court today, that in light of the physical and mental strain the case was placing upon him he wished to withdraw.'' He added the Governor's office had been seeking a successor for Mr. Mitchell since December: "This has been pursued with urgency, recognising the importance of the case for Bermuda's legal reputation and the amount of time, effort and money expended by the parties.'' WHAT MITCHELL WANTED What Mitchell wanted Immediate termination of his present $117,227-a-year contract, the return of tax he had paid, cash to cover his entitlement to two Business Class single air tickets and air freight to Hong Kong and the value of accumulated leave.

Payment of $1,500 per day until the end of the High Court case. If the case continued beyond April 2002 the rate must go up by the rate of inflation.

A $100,000 pay-off if the case finished before December 31, 2001 as well as payment of any outstanding daily fees.