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Court rules against Inferno nightclub owners

Economic and financial difficulties may have ended the dream for the owners of a North Shore nightclub for a mature clientele.

A Supreme Court judge has refused to halt a writ of possession for 81 North Shore Road, Devonshire, in relation to the 2018 two-million-dollar sale of the property.

It was the home of the Inferno Lounge & Sports Bar, billed as Bermuda’s premier members club. The business has now closed down and vacated the property.

Mortgagee Robin Swan in February 2020 made a formal demand for repayment of the mortgage debt, after he claimed mortgagors Troy and Debra Brimmer had failed to punctually pay required instalments.

By March 2020, the 73-year-old Mr Swan said the total debt due was $1,758, 250.39 with accruing interest at the rate of 9.00 per cent, which represents 7.00 per cent interest and 2.00 per cent delinquency fee, per annum.

He had sought a court order for possession, sale and monetary judgement for the mortgaged property previously known as Anchorage.

Mr Swan said the Brimmers had not kept up with the monthly mortgage payments of $11,642.79, and he had sent them letters setting out their delinquency and his notice of the appointment of a receiver for collection of property rents.

Rents were payable from a number of sources. The premises host the operating restaurant Seaside Grill, the nightclub, a wholesale store and five apartments.

Seaside Grill is unaffected by the legal action and continues to trade.

Mr Brimmer said he has taken legal action against his former lawyer for not transferring some of the owed money through his law firm.

He also suggested to the court that he and his wife had been current with their mortgage payments prior to the Covid-19 pandemic.

But the court ruled that the Brimmers had accepted that they contractually defaulted on their mortgage obligations by failure to pay sums which far exceed the allegedly stolen money.

At issue in the most recent hearing was the original owner’s order for possession of the property and its sale.

It was argued that the property was Mr Swan’s primary asset and the sale of the property was meant to finance his retirement.

He was said to be without any meaningful income from the property since December 2019 when, he says, the Brimmers stopped making regular payments.

Mr Brimmer said he was faced with building repairs to the tune of $375,000, and a business slowdown caused by the pandemic.

He sought a stay of the court orders so that he would be able to get re-financing in place.

This March, the court was informed by Mr Swan’s lawyer, Richard Horseman of Wakefield Quin Limited that an agreement had been reached between the parties, granting Mr Swan the property, and a right of sale and judgement in the sum of $1,885,783.77.

But the eventually contentious consent order was stayed for 60 days, on the condition that the Brimmers pay Mr Swan $40,000.00 within two days - on or before March 19th.

Puisne Judge Mrs Justice Shade Subair Williams subsequently has ruled that it would be a serious injustice if the Brimmers were to succeed in their court case.

Their legal action attempting to stop Mr Swan from reclaiming the property and selling it was frivolous, she said.

The ruling, she added: “does not prevent the Brimmers from making application in the mortgage proceedings to vary judgment in respect of the monies owed to Mr Swan under the mortgage agreement”.

Mr. Brimmer had no comment on the ruling or his future plans.

This story has been amended to make clear that the Seaside Grill, a tenant of the building, remains in operation and is unaffected by the legal action.

Supreme Court decision

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Published August 05, 2021 at 8:00 am (Updated August 06, 2021 at 8:13 am)

Court rules against Inferno nightclub owners

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