Lawyer Llewellyn Peniston has paid off a debt of almost $10,500 to two former clients but could still have to fork out thousands of dollars more in legal costs.

Mr. Peniston was warned by a Supreme Court judge on Wednesday that he faced jail if he failed to pay the money to Terry Philpott and Desmond Richardson, who brought a civil action against him.

The court heard yesterday that Mr. Peniston presented a manager's (or cashier's) cheque for $10,415.76 to the men's lawyer Paul Harshaw on Wednesday afternoon and it cleared.

Puisne Judge Norma Wade-Miller awarded costs on an indemnity basis and Mr. Harshaw told The Royal Gazette that previous indemnity costs awarded to his clients in the case meant Mr. Peniston could be looking at a bill of about $20,000.

Mr. Philpott and Mr. Richardson issued a writ against Mr. Peniston last August for $70,000 owing to them.

The money was paid by another law firm to Peniston and Associates in March 2006 to settle a matter involving the two men.

The court heard on Wednesday that $35,000 was paid by Mr. Peniston following the writ, after which payment came in "dribs and drabs".

Mr. Peniston told Mrs. Justice Wade-Miller that a portion of the $70,000 was put in an account which was later frozen because one of the signatories was a lawyer who had left his firm and with whom he was involved in a dispute.