Spurling & Kempe.

The Royal Gazette understands the action stems from advice allegedly given during the purchase of the hotel some years ago.

Plaintiffs in the action filed in the Supreme Court this week include: George Robinson, Ralph Marshall, Ernest DeCouto, MEF Enterprises Ltd, Ralph Terceira Sr., Ralph Terceira Jr., Morris White, Dennis Fagundo, and John Pereira.

The others are: Dr. James King, Charles Vaucrosson, Fernance Perry, Henry Dowling, Gilt Holdings Ltd., Argus Management Services Ltd., and Raphael Ltd.

The law firm of Milligan-Whyte & Smith was named as their counsel.

Respondents, all from Appleby, Spurling & Kempe, are: John D. Campbell, Dianna P. Kempe, Richard D. Spurling, Kenneth E.T. Robinson, Chesley White, Jay W.

Kempe, Michael J. Spurling, Alan W. Dunch, and Peter Bubenzer.

Yesterday, those sides in the suit contacted by The Royal Gazette were reluctant to comment.

"It is an action against partners of our firm, and beyond that I can't make any further comment,'' said lawyer Mr. Alan Dunch.

A source within Argus Management Services Ltd said: "The writ is over a long-standing issue, which is to do with the purchase price of Grotto Bay, and a dispute over legal fees.'' Recently, it emerged the same 16 plaintiffs were being sued by Barclays Bank Plc.

It is believed Barclays was seeking to recoup legal fees incurred successfully defending a lawsuit in New York brought against it by a previous owner of Grotto Bay, Waterways Ltd.

Waterways had sued Barclays amid claims it was forced by the bank to sell the hotel several years ago.

Also entered in the Supreme Court register is a $665,300.08 writ by mortgage lending company Bermuda Home Ltd., represented by Appleby, Spurling & Kempe, against former Progressive Labour Party MP Julian Hall.

Yesterday, neither party was willing to throw light on the suit, Mr. Hall commenting he had not yet received the writ.