Lawyer Llewellyn Peniston was told by a judge yesterday he could end up behind bars if he didn't pay two former clients almost $10,500 owing to them.

Puisne Judge Norma Wade-Miller issued the warning at a Supreme Court civil hearing brought by Terry Philpott and Desmond Richardson against the former UBP Senator.

Mr. Peniston wrote a cheque for $10,415.76 in the courtroom and told The Royal Gazette later that he had replaced that with a cashier's cheque from the bank to ensure the matter was at an end.

Mr. Peniston said last night the matter need never have gone to court if Paul Harshaw, the attorney for the plaintiffs, had been willing to take his telephone calls and discuss the dispute. "It's settled," he said.

Mr. Harshaw told the court that his clients issued a writ against Mr. Peniston last August in relation to $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 Mr. Philpott and Mr. Richardson, but they did not receive the cash from Mr. Peniston.

Mr. Harshaw said Mr. Peniston paid $35,000 to the men after the writ was issued and prior to a judgment made on October 8 in the plaintiffs' favour.

"Out of the $35,000 that my clients have judgement for, payment has been made in dribs and drabs," said Mr. Harshaw.

"This is client trust money that we are talking about," he said, adding that it was the same kind of money that saw disgraced lawyers Charles Vaucrosson and Larry Madeiros serve time in prison.

The court heard that Puisne Judge Ian Kawaley ordered on May 8 this year that Mr. Peniston pay more than $22,000 to the plaintiffs or face 28 days in jail but the order could not be enforced because it was made in chambers, not open court.

Mr. Harshaw said Mr. Peniston repeatedly failed to show up for court hearings, including one on July 17 when Mr. Justice Kawaley issued a warrant for his arrest.

The warrant was executed by two bailiffs which led to Mr. Peniston appearing in court before Mrs. Justice Wade-Miller yesterday morning. The judge told him: "If you don't pay your clients' money, you could find yourself behind bars."

Mr. Peniston explained that a portion of the $70,000 was put in an account which was subsequently frozen because one of the signatories was a lawyer who had left his firm and with whom he was involved in a dispute.

And he claimed Mr. Richardson was still a client of his and owed him more than $5,000 in fees but added he was prepared to pursue that separately.

Mr. Peniston said the matter could have been resolved without court proceedings. "Mr. Harshaw has never taken a call from me. He has never responded other than flooding my office with paperwork."

He added: "I'm going to write the cheque now. I wish to have absolutely nothing to do with him (Mr. Harshaw)."

A further hearing will be held this morning to confirm the money has been paid and to deal with the issue of costs.

The Bermuda Bar Association suspended Mr. Peniston from all work involving real estate law in January 2007 after he was found guilty of acting in a verbally abusive and intimidating manner.

The same month, in a separate matter, he agreed to pay back creditors $900,000 — money owed to them for more than a decade — plus $100,000 costs to the Official Receiver.