Log In

Reset Password

Union goes to court again

Astwood today to find out if it can use its own bank accounts or not.The move follows a day of confusion yesterday which apparently saw a union bank account first unfrozen, and then frozen again,

Astwood today to find out if it can use its own bank accounts or not.

The move follows a day of confusion yesterday which apparently saw a union bank account first unfrozen, and then frozen again, by the Bank of Butterfield.

In court today the union will be joined by the sequestrators appointed last week to seize its assets. They too want Sir James' decision on what should happen to the union's cash.

This morning's Supreme Court hearing is the latest surprise twist in the long-running BIU dispute with Bermuda Forwarders.

On Friday Sir James gave the union a reprieve from being fined $100,000 a day and having its assets seized by court sequestrators -- punishments imposed after the union's Island-wide strike last week. The Royal Gazette understands that after Friday's ruling the union's account at the Bank of Butterfield was unfrozen, with at least one cheque cashed as normal yesterday morning.

But yesterday afternoon, following an exchange of letters between the bank's lawyer and the Attorney General, the account was frozen again, and cheques were not honoured.

Last night it appeared the problem lay in the interpretation of Friday's court order.

Lawyers for the sequestrators decided the order meant the union's accounts were still frozen. But lawyers for the union decided it meant the accounts were unfrozen.

Union lawyer Mr. Julian Hall MP said last night: "The only reason we asked for a stay of execution on Friday was so the union could use its bank accounts in the normal way. Unless it can use its bank accounts in the normal way we don't understand why the stay would have been granted.

"I don't think the Chief Justice's order is ambiguous. It's clear as far as I'm concerned.'' Mr. Jeffrey Elkinson, lawyer for the sequestrators, said: "The commissioners (sequestrators) formed the view that the accounts were still frozen. In view of the differing views as to the court order, they think it appropriate to seek the court's direction. We want to make sure we're doing the court's wishes.'' Attorney General Mr. Walter Maddocks, who set in motion the sequestration of the union's cash, last night denied instructing the banks one way or the other. He said he had merely received a letter from Mr. Geoffrey Bell, lawyer for the Bank of Butterfield, about the situation and had replied that there was room for clarification of Friday's court order.

Mr. Hall had drafted the order, said Mr. Maddocks.