A Government legal blunder could cost the taxpayer up to $4 million, can reveal.

The Supreme Court has ruled in favour of the Hardell Group over the supply of multimedia services at Bermuda International Airport after the Attorney General's office failed to offer a legal defence.

A judgment in default was made against Telecommunications Minister Renee Webb and Transport Minister Ewart Brown.

This leaves Government with the prospect of attending an assessment of damages hearing in the New Year where Hardell will seek to claim an estimated $4 million in lost profits.

Richard Horseman, who represents Hardell, told the Attorney General's office was notified on December 11 that the time allowed to mount a defence against the legal action was about to lapse.

But five days after the December 18 deadline, Government still had not put up a legal defence, leaving the way clear for Hardell to be awarded the judgment.

The writ was filed by Hardell in October asserting that Dr. Brown tried to remove the company from their legal position at the Airport, putting Bermuda Airport Advertising there in their place ? Airport Advertising is run by Walton Brown, who is related to Dr. Brown.

The company also asserted that $200,000 worth of their technical equipment was removed from the Airport by Airport staff, however Hardell still has not been told why the equipment was removed or even where it is now.

These assertions were upheld by the Supreme Court as there was no defence submitted by Government, leaving the way clear for a multi-million dollar damages claim.

The original suit claims for: "A binding exclusive contract exists... for the provision by the Plaintiff (Hardell) of all and any multimedia and foreign 24 hour news and/or/ telecast programme/services in all public and non-public areas of the Bermuda International Airport .... for an initial period of eight years." There are also claims for breach of contract, "wrongful interference with goods and deceit", and costs.

Hardell Group, which is also suing Government in the ongoing cable broadcast row, installed equipment at the Airport to provide television news on large screens at various points around the terminals.

They had around $200,000 worth of equipment in place and began operating the service in March 2000 with a letter of intent from Government to continue doing so for eight years. However, less than a year later, their equipment was removed and Walton Brown's Bermuda Airport Advertising took over.

It is understood that although Hardell was victorious in this legal battle they are now just seeking damages but will not be taking over the operation of the multimedia facilities.

When contacted by Dr. Brown said it was a matter for the Attorney General's office and said he would not be making a comment. Government lawyer Phil Perinchief said Government was now seeking a summons for the case to go before a judge and be heard on its merits.

"We will be dealing with this swiftly," he said, although he was unable to comment on why it was a defence had not been submitted by the deadline ? which originally led to the default judgment being made.