against Liquid Plastics Limited, the British firm that allegedly breached a distributorship contract with Mr. Smith's firm, Bermuda Coatings Company.

Mr. Smith's firm recently won the first round of the legal battle in the Supreme Court, in which the local company won the right to have the case heard in Bermuda.The British firm was seeking to have the matter heard before a British court.

Mr. Smith said that three years ago, Bermuda Coatings was given exclusive distribution rights locally for the sale of LPL products. A year ago LPL also granted distribution rights to another local company. Mr. Smith filed suit last July, asking for $600,000 in damages.

He is represented by the Hon. Jerome Dill of Appleby, Spurling & Kempe. "We spent a lot of money promoting their products locally and abroad. We were doing good business -- something in the region of 200,000 in the first year. And then, along comes this larger firm and wants to benefit from the fruits of our labour. It's not right and should not be tolerated in the business community.

"If we lose,then other overseas companies will think that only in Bermuda can you sign a legal contract with a local company and then once the legwork has been done by that local company, (they) can switch allegiance to another company and get away with it.''