setback from Bermuda's Court of Appeal judges.

They have refused to give Mr. David Barber the go-ahead to take his battle to Britain's Privy Council.

Now Mr. Barber and his lawyer, Mr. Alan Dunch, seem set to make a direct appeal to the council.

The row centres on the two-storey addition to the ACE Building in Woodbourne Avenue, Pembroke.

Mr. Barber lives next to the building and has strongly objected to the development approved by Environment Minister the Hon. Gerald Simons.

In a court battle, Puisne Judge the Hon. Mr. Justice Meerabux sided with Mr.

Barber.

Mr. Dunch had argued Mr. Simons had no right to rule the ACE Building could be extended to five storeys.

He said the Development Applications Board had already ruled the addition flouted planning regulations.

As the expansion was completed before the Supreme Court ruling, Mr. Dunch demanded the top two storeys be torn down immediately.

But later the Court of Appeal overturned Mr. Justice's Meerabux's decision.

At the time, Mr. Dunch told The Royal Gazette : "We will be filing notice of motion for leave to appeal with the Court of Appeal.

"If the Court of Appeal does not grant us leave to appeal, we will go directly to the Privy Council.'' Last week, the court refused to grant leave to appeal, and now a direct approach to the Privy Council seems likely.

Mr. Dunch yesterday was off the Island and could not be reached for comment.

Lawyer Mr. Saul Froomkin, representing building owner Scarborough Property Holdings Ltd., said of the appeal judges' ruling: "We urged upon the court the fact that their judgment was clearly right and there were no grounds on which the matter ought to be referred to the Privy Council.''