A modern day David and Goliath battle is heating up between former partners turned foes following a dispute between a local advertising company and a US firm concerning the rights to a Government contract for advertising at the Bermuda International Airport.

Last week the Supreme Court of Bermuda became involved in the dispute between US company Interspace Airport Advertising Ltd. (Interspace) and Bermuda Airport Advertising Ltd. (BAAL), a company wholly owned by Evoke International Ltd. (Evoke).

On May 29, the Supreme Court of Bermuda granted Interspace an injunction against two operators of the airport advertising concession at the Bermuda International Airport, Evoke and BAAL.

A statement released by Interspace said: "The Court's Order restrains both Evoke and BAAL from divulging or using any confidential or privileged business marketing information of Interspace and restrains Evoke from working with any airport advertising concessionaire, other than Interspace at the Bermuda International Airport."

Interspace said the ruling derives from a claim that Evoke and BAAL unilaterally usurped a government contract recently awarded to a partnership formed by Evoke and Interspace to run the airport advertising concession at the Bermuda International Airport. "What we're hoping for here is the same fair play and good faith dealings that Bermudians have always placed on business relationships," said a director of Interspace Mark Lieberman.

"Evoke and BAAL can't simply take Interspace's entire proposal and advertiser contracts and expect to get away with it."

However, president of Evoke Walton Brown Jr. responded to Interspace's claims and said that BAAL would continue in its objective of running the Airport advertising concession.

"We are proceeding to deliver on the obligations we have committed ourselves to and look forward to making the airport a showcase for Bermudian culture, tourism and international business," said Mr. Brown.

He said BAAL acknowledged Interspace, its former partner on the airport project, had created difficulties in the marketplace since they were excluded and said: "Interspace is a multimillion dollar American company that is used to getting its own way.

"For the past two months they have engaged in a public and private campaign to undermine BAAL's ability to deliver its advertising programme at the airport and have had some modicum of success in dissuading advertisers."

Mr. Brown also said it was not his intention to debate Interspace through the media.

But Mr. Brownwas keen to set the record straight on several key issues.

He said that Interspace's demands on the particulars of the partnership would contravene Bermuda law and said: "Evoke refused to enter into a relationship with an overseas company in which the spirit and letter of Bermuda company law is violated."

He added: "The recent injunction obtained by Interspace was through an ex parte hearing in which BAAL was not present and was obtained through the submission of inaccurate information. BAAL has initiated the application process and we are confident that once there is a hearing from both sides the injunction will be lifted. In any event, BAAL is currently working with a new partner to deliver new and exciting opportunities at the airport."

Interspace said the court's injunction effectively bars Evoke and BAAL from fulfilling obligations required for operating the airport advertising concession under the government contract since the advertising programme at Bermuda International Airport must, by that contract, consist entirely of Interspace's proposal, business plans, creative developments and marketing tactics stated as owned by Interspace in the Proposal.

Interspace also said the injunction rendered the existing Airport advertising licence automatically breached since BAAL pledged to carry out the Interspace proposal but has been prohibited by the court from using any part of it.

The court ordered that Evoke and its employees be restrained "from working with any airport advertising concessionaire, other than Interspace, in regard to the advertising concession at the Bermuda International Airport"

Mr. Lieberman added: "Since the Court's Order restrains Evoke and all of its employees from working with any airport advertising concessionaire other than Interspace, it serves to bar Evoke and its employees from working in this capacity, even as BAAL employees, if we're not a part of what's happening at the Airport."

Interspace also said the court order invalidated existing contracts to which advertisers may have originally committed since they too were prepared and drafted by Interspace.

Interspace said their "Community Showcase" programmes could be found in more than 160 airports throughout North America, the Caribbean and Latin America and the distinct "Community Showcase" programme they designed for the Bermuda International Airport was met with much enthusiasm and interest from the Bermuda business community.

Mr. Lieberman added: "Many of the local advertisers that had signed on to the program have expressed concern over the recent situation and some have chosen not to participate at all were Interspace not involved. It is Interspace's hope that in the future, we may still do business at the Bermuda International Airport despite the difficult situation that circumstances have thrust upon us."

Interspace also said that on four days notice Evoke and/or BAAL can apply to the court to vary the terms of the Court's Order, but said that no notice of application has been received by the company.

Chronology of events according to Mr. Brown:

Evoke International invited Interspace in July 2001 to work with them to jointly submit a proposal to the Bermuda International Airport in response to a request for proposals for the airport advertising concession.

Evoke and Interspace agreed on the terms of a business relationship, including compensation, and agreed further that there would be a Bermuda company created called BAAL, which would actually be the legal entity responsible for all matters relating to the contract.

The Department of Airport Operations responded by expressing an interest in pursuing a contract with BAAL, but they proposed fundamentally different financial terms and it was largely through the efforts of Evoke that a negotiated agreement was reached between BAAL and the DAO.

During the month of December 2001, DAO expressed a desire to only negotiate with Walton Brown as the Interspace team, then headed by Marianne Liberman, was deemed "difficult to talk to".

With the contract terms agreed and a sense that BAAL would be awarded the contract, Mr Brown determined in January 2002 that BAAL should be incorporated, with Evoke holding 60% and Interspace 40% of the shares.

Interspace sent a fax outlining the terms they wished to see in place, to which Evoke responded. Interspace replied by insisting-in an e-mail from lawyer Steve Shible dated 14 January 2002-on a number of terms that were unacceptable to Evoke, including the following:

1) "Irrevocable control over this deal and the proceeds..[and this is not negotiable, and Interspace is prepared to (and frankly, at this point, expects to) walk away from the deal if this cannot be agreed upon in writing."

2) "Interspace will require exclusive signing authority for BAAL."

3) "The ability to have another Bermudan [sic call Evoke's stock."

4) "Funds must flow first through Interspace, and thereafter can only flow through BAAL, if at all, to the extent necessary."

The e-mail concluded with "Interspace has lost confidence, and is not at this juncture interested in extensive negotiations on structure."

Marianne Liberman took the Interspace position further in a voice message when she severed the connection with Evoke and stated she was pulling her people out of Bermuda and would never do business with Evoke again.

Interspace changed their position dramatically within 24 hours and in a series of e-mails and voice messages apologised for their misunderstanding and expressed a desire to continue to work with Evoke. On 17 January 2002 Walton Brown informed Interspace that Evoke declined the opportunity to re-enter into a working relationship with them.

Towards the latter part of January, Mark Liberman, the largest shareholder of Interspace, visited Walton Brown, unannounced and uninvited, and sought the opportunity to restart discussions about a working relationship. Those discussions were held over a period three months but no final agreement could be reached.

On 17 April 2002 Walton Brown informed Interspace that BAAL/Evoke would end its effort at reaching a new agreement with them and offered compensation for their earlier efforts with the project.

On May 29 Interspace was granted an injunction against Evoke and BAAL by the Supreme Court of Bermuda.