declared in contempt of court for a letter campaign which included accusations against, and condemnations of, former Chief Justice, Sir James Astwood.

And it has been stated that Bermuda's international reputation has been damaged by that alleged one man campaign.

The action is being brought against Mark Gregory Hardy, a director and the principle owner of Focus Insurance Company, now in liquidation, by liquidators Mr. David Lines and Mr. Peter Mitchell.

A motion asking that he be cited for contempt is based on a claim that he has scandalised the court.

Eight letters and a ninth document were all referred to by counsel for the liquidators, Mr. Saul Froomkin of Mello, Hollis, Jones and Martin. He is being assisted by his colleague, lawyer Mr. Andrew Martin.

Mr. Froomkin stated outright: "We rarely have such scandalous conduct, such as is before the court today.'' Hardy, who is unrepresented, is reported to be the author of the letters between December 29, 1992 and May 26, 1993, which repeatedly referred to the former Chief Justice in what Mr. Froomkin called "scurrilous, defamatory and abusive'' terms, "sent all over Bermuda, England and elsewhere'' which had wide circulation including to members of the media.

He submitted before the Puisne Judge, the Hon. Justice Meerabux, that Hardy had made "dozens of allegations'' and that by inference, had suggested that the former Chief Justice "sold justice''.

The counsel continued that while researching other similar cases he was unable to locate any such instance where there had been such an incredible amount of attacks, on so many occasions, so widely circulated.

"And there is no denial, no explanation and no justification from Hardy,'' said Mr. Froomkin. "Each and everyone of those remarks is an act of contempt, without justification, with respect to a Chief Justice who can't defend himself, in a small jurisdiction like Bermuda.

"This can only adversely affect the international reputation of Bermuda.

This is completely different from a single one-off letter, particularly when you bear in mind the number of scurrilous attacks by Hardy, over a very long period of time.

"The evidence is uncontested and incontroverted.'' The offending documents refer to the "corrupt and inept ruling'' of the Chief Justice; his "asinine ruling''; the "disgraceful bias, partiality, pre-judgement improper and illegality which he and his court has shown to my affairs.'' Documents entered into evidence call the chambers of the Chief Justice biased and refers to Bermuda as a "corrupt little Island''. In one document there is a quotation, "Has the Chief Justice finally lost his marbles? Did he ever have any legal training?" There was more.

Hardy, who admits to sending the letters, insisted that he has since apologised to the court for his remarks, and denies being in contempt of court.

Yesterday, he failed in a bid to have the Press barred from the hearing, after he said he realised during lunch that a Royal Gazette business reporter was present. There was no one else in the public gallery at the time.

Claiming repeatedly that he was unaware why he was being brought to court in this matter, Hardy heard Mr. Froomkin state that being aware of the letters, the liquidators, as officers of the court, had an obligation to bring such matters to the court's attention.

Hardy came to Bermuda in 1985 and was instrumental in setting up a group of companies that included Forum Re, Focus Insurance, and Aneco Re. He lived in a condominium he purchased in the Flatts area.

That was before his business went sour and he was forced to sell the condo to pay legal costs. He now lives in the UK where he was born. He was struck off as a chartered accountant, after being declared bankrupt.

Liquidators have said that they have been trying to get a meeting with Hardy over the liquidation. Hardy has said that he has been trying to get a meeting with the liquidators.

Justice Meerabux on more than one occasion expressed concern that Hardy was unrepresented and trying to act on his own behalf, but not always within the confines of the rules of the court.

At one stage Mr. Froomkin said: "Mr. Hardy gets away with murder. He flies back saying he is a poor bankrupt. He confused the Privy Council with this and I won't let him get away with it again.'' The case adjourned until today, as Hardy, who has just begun his defence, seeks to have Mr. Froomkin removed from the case.

Mr. Saul Froomkin.

BANK IN COURT -- Businessman Mark Hardy.