that next week begins critical hearings to settle the long-standing hotel workers contract dispute.

The dramatic move by the Hotel Employers of Bermuda -- the negotiating arm for the Island's hotel industry -- is contained in a Supreme Court writ naming Mr.

Mello as defendant.

It is seeking a court injunction to restrain him from sitting on the Essential Industries Disputes Settlement Board when it begins hearings the contract dispute on Wednesday.

The HEB's writ of summons says there is a "likelihood of bias'' on the part of Mr. Mello as a member of the board to hear the labour dispute between the HEB and the Bermuda Industrial Union in negotiating a new collective agreement.

The suit will be heard by Chief Justice the Hon. Sir James Astwood on Monday in his Chambers.

Mr. Mark Diel will represent Mr. Mello. Mr. Jai Pachai will put forward the hoteliers' case.

Lawyers for both sides yesterday declined to comment on the case. All hoteliers contacted yesterday refused to explain the suit -- an indication of the extreme sensitivity of the case and given its timing on the eve of the Board hearings.

It is believed their push for Mr. Mello's ouster stems from events in 1991 when BIU and HEB negotiators were at loggerheads over acceptance of the so-called Hobgood award, a contract settlement drafted by American mediator Mr. William Hobgood. The award was never implemented following BIU rejection.

Mr. Mello at the time was a ministerial appointee on an ad hoc committee working to get the two parties to come to terms on a contract deal.

Mr. Mello is a senior partner of Mello, Hollis, Jones & Martin.