warned the star witness against interfering with evidence.

Marion MacMillan, the wealthy owner of the island, was sternly questioned by the trial judge after she was overheard speaking to another witness outside the courtroom.

Mrs. MacMillan had been giving evidence about a contract she signed in 1990, agreeing to sell the island for $8.5 million. She changed her mind before the sale was completed, and has now been taken to court by the would-be buyer, businessman Michael DeGroote.

Yesterday she was asked to leave the courtroom during legal argument. When she returned, Mr. DeGroote's lawyer, Mr. John Riihiluoma, took a whispered message.

He then asked Mrs. MacMillan if she had been talking to her personal adviser Mr. Bob Engel about her evidence, while outside.

Mr. Engel, a US lawyer who advised Mrs. MacMillan during the Perot's Island deal, is expected to be a witness later.

Mrs. MacMillan admitted Mr. Engel was outside with his family.

Mr. Riihiluoma said she had been overheard by Mr. Anthony Philip, a trainee attorney working for another trial lawyer.

Mrs. MacMillan told the judge, the Hon. Mr. Justice Ground, that she had been frustrated by Mr. Riihiluoma's questions and had said this to Mr. Engel.

She admitted she told Mr. Engel which part of the contract she was being questioned about.

But he did not reply, she said, and there was no discussion.

Mr. Justice Ground said the incident was a warning of the dangers of discussing the case with anybody.

"It's very dangerous because it can pervert the course of someone else's testimony,'' he told her.

Mrs. MacMillan went on to tell the court of the reasons for her "change of heart'' over the sale, even though she had hired a moving company.

She said plans to move to the Isle of Man, off the coast of England, fell through. And a month before the sale was due to be completed, she hosted two psychological counselling classes on Perot's Island.

"Suddenly the island had purpose and it came to life,'' she said. She could not move to somewhere else in Bermuda, the court heard.

"The very fact that the island was surrounded by water allows the privacy and sense of security that my guests needed.

"It's part of the dynamics of the class that people don't receive telephone calls or interruptions, anyone pounding at the door.'' Mr. Riihiluoma asked if guests compliment her on the island.

"No - to the contrary,'' she said. "They're very unsure why they are there and what they are there to do. This is a very sensitive issue.''