White Sands Hotel is being sued by Argus Insurance Company for alleged non-payment of tens of thousands of dollars in insurance premiums.

It is the latest in a line of writs issued against the Paget hotel and its owner, the American property developer James M. Dwyer.

The Royal Gazette understands Argus is suing for unpaid insurance premiums for both employees at the hotel and the property itself after losing patience at having to wait so long for money.

The hotel is currently closed for renovations and is due to re-open in the spring.

White Sands general manager Esan Frederick said yesterday: "You'll need to speak to the owner of the hotel for a statement (about the writ)."

The Royal Gazette contacted New Jersey-based Mr. Dwyer for comment yesterday but he did not return calls.

Argus vice-president finance David Pugh would not discuss the matter and referred calls to the hotel.

Mr. Dwyer and White Sands have faced a series of writs issued at Supreme Court in Bermuda.

In 1998, J. Mark Browne filed a writ for $30,619. In June last year Guardwell Security Services Limited issued a writ against the company.

In the same month, eleven plaintiffs, including investment bankers Merrill Lynch and K.M. Properties, filed a writ against Mr. Dwyer, White Sands, Margaret Dwyer, and V.J. #2 Investment Limited.

The hotel faced further controversy in December last year when former employee Steven Paynter claimed health insurance and pension deductions made by White Sands had not been paid to Argus.

Mr. Paynter, who said he was seeking to recoup $1,000 in insurance payments, claimed he left the hotel six months earlier because his pay cheques kept bouncing.

Mr. Dwyer, who bought White Sands in 1998, has tried to buy a number of other hotels in Bermuda but has failed to put pen to paper in any of the potential deals.

He courted Forte Hotels, the owners of the closed Belmont Hotel, about buying it, until Forte ran out of patience and sold the property in Warwick last year to American-based Bermudian Richard Halsey.

Mr. Dwyer had also been linked to the Sonesta Beach Hotel and Elbow Beach Hotel, but talks on both of these properties collapsed.