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Both sides accused of lying in bank lawsuit

Harold Darrell and Bank of Bermuda were both accused of lying as the protracted court battle between the two continued yesterday.

The bank is trying to get the Supreme Court to reject a decision by then-Community Affairs Minister Randolph Horton that a Human Rights Commission (HRC) board of inquiry can be heard into Mr. Darrell's claim that the bank breached his confidentiality and didn't investigate his complaint because of racial bias.

Mr. Darrell made personal approaches to Mr. Horton when he was appointed Minister to try to get him to order a board of inquiry after HRC had apparently rejected an earlier complaint in January 2001.

Bank lawyer Jeffrey Elkinson said it was part of unfair and biased tactics by Mr. Darrell to force the bank into settling a separate lawsuit in which he is claiming a large amount of money.

"The purpose of these contacts with the Minister was to persuade him to appoint a board of inquiry. This is something Mr. Darrell has always wanted in his grand scheme to put unfair pressure on the bank to settle," said Mr. Elkinson in his skeletal argument.

Yesterday, he told Puisne Judge Charles-Etta Simmons: "We have to look at these affidavits (from Mr. Darrell) with something of a critical eye because it is evident from the affidavits he has filed that he is quite prepared to lie."

Mr. Darrell's lawyer, Delroy Duncan objected, and said he would have subpoenaed witnesses if he knew that was going to be an issue.

He added: "It would be appropriate to call witnesses to establish my client's claim that the bank told lies ? open lies."

Mr. Darrell is trying to get HRC to investigate his claims that the bank's chief executive officer and board of directors did not settle his separate civil claim against them for money for alleged breach of confidentiality on the grounds of racial bias.

In January 2001, the then executive officer of the Human Rights Commission, Neville Darrell wrote to Mr. Darrell telling him the matter had been dismissed.

But in Supreme Court yesterday, Melvyn Douglas for the Ministry of Community Affairs and Sport, produced evidence that HRC had no written record of a decision being taken to dismiss Mr. Darrell's case.

Mr. Darrell then sought a judicial review of this alleged decision and apparently obtained an order for the Human Rights Commission to re-open the complaint. The bank says it was not party to any of these hearings.

The bank argued that there has been administrative unfairness and the Minister referred the matter to a board of inquiry because he was "biased" against the bank.

Mr. Elkinson has told the court that Mr. Darrell ran up large debts at the bank and despite various promises, never repaid the money he owed.

In 1997, he wrote a formal complaint against a member of the bank that the person disclosed his financial position to a third person.

The bank said it investigated the matter and responded within a week that there was no substance to the claim.

In 1998, as Mr. Darrell's debts continued to rise, the allegation surfaced again, this time against another member of the bank, according to Mr. Elkinson.

Mr. Darrell alleged an internal bank inquiry in 2000 found in his favour, but Mr. Elkinson said the bank's position was that there was no inquiry and no finding that the bank breached its obligation to keep Mr. Darrell's business dealings confidential.

Mr. Darrell issued a writ alleging breach of confidentiality at the Supreme Court and as well as writing to individual members of the bank, he also wrote to United Nations Secretary General Kofi Annan and CNN, according to Mr. Elkinson.

The bank argued the Commission had no right to investigate Mr. Darrell's claim because a claim had to be made within six months of the alleged contravention.

The bank argued there was bias in Mr. Darrell's relationship with Minister Horton ? whom the businessman personally contacted ? and in the Minister not considering that the complaint was out time, that it had apparently been dismissed by the Commission, and that there was a court order that stayed any proceedings.

"This application (to have the board of inquiry rejected) is to do with fairness and as far as the bank is concerned, this was not fair," said Mr. Elkinson.

"When the bank complained that the action taken by the Minister was not statutorily correct, it then learned of this private correspondence between the Minister and Harold Darrell and Harold Darrell arranging to have a meeting with the Minister."

Mr. Douglas for the Ministry of Community Affairs and Sport, said HRC did not dismiss a complaint against Mr. Darrell.

And he said HRC did not hold hearings, but was an investigative body.

HRC had decided to refer the matter to Mr. Horton because it was unable to resolve the complaint within nine months and neither side seemed prepared to settle, he said.

"The bank was not interested in a settlement of this case. They took the view 'whatever'," said Mr. Douglas.

"The history between the parties is somewhat antagonistic and it didn't seem like any of them would budge," he added.

The hearing, which began on Monday, will continue today.