Charles W. Kempe Jr. and Michael J. Arnold the Joint Liquidators of Mentor Insurance Ltd v (1) Ocean Drilling and Exploration Company and Others

• Jurisdiction: Bermuda
• Judgment Date: 08 April 1991
• Date: 08 April 1991
• Docket Number: Civil Jurisdiction 1989 : No. 376
• Court: Supreme Court (Bermuda)

In the Supreme Court of Bermuda

Astwood, CJ

Civil Jurisdiction 1989 : No. 376

BETWEEN:

Charles W. Kempe Jr. and Michael J. Arnold

The Joint Liquidators of Mentor Insurance Limited

Plaintiffs

and

(1) Ocean Drilling & Exploration Company

(2) Mentor Holding Corporation

(3) Pinnacle Reinsurance Company Limited

(4) Mary Sibille Colson (Executrix of the Will of William L. Colson, deceased)

(5) Clovis H. Steib

(6) Ronald W. Herman

(7) Odie I?. Vaughan

(8) Hugh J. Kelly

(9) Herman S. Kelley

(10) J. Douglas Highley

Defendants

Mr C. Michael Crystal, Q.C., Mr Alan Dunch and Mr Richard Sheldon for the Plaintiffs

Mr Michael Beloff, Q.C., Mr Mark Diel and Mr Mark Templeman for the Third Defendant

REASONS For Order dated 21st March, 1991

The Third Defendant has brought a summons seeking to strike out the Plaintiffs' writ and statement of claim against (inter alia) the Third Defendant pursuant to Order 18, rule 19 of the Rules of the Supreme Court, 1985, and/or the inherent jurisdiction of the Court on the grounds that:-

• (a) ‘The Statement of Claim may prejudice, embarrass or delay the fair trial of the action and/or is an abuse of the process of the Court.

• (b) The Statement of Claim discloses no reasonable cause of action.’.

At the hearing of the application on the 21st March, 1991, the Plaintiffs sought and obtained my order disallowing the Third Defendant from proceeding with their summons. This was a summary process which did not take the Third Defendant by surprise as they were alerted, on the 20th March, 1991, that such a summary order may be sought. Furthermore, the Defendant had an intimation in June, 1990, that the Plaintiffs may have recourse to such a summary procedure.

The reason why I took such an unusual course was that I was trying to save expense and court time. It has to be appreciated that this present litigation is but a small part of very extensive, complex and expensive litigation being pursued by the Plaintiffs, as the Liquidators of Mentor Insurance Limited. a company placed into compulsory liquidation in 1985.

A statement of claim was first served in the present action on 3rd October, 1989. The Third Defendant and other Defendants brought applications in November, 1989, seeking to strike out the statement of claim. Submissions in these applications were started before me on 4th June, 1990, and terminated on 15th June, 1990, by the parties agreeing that the Plaintiffs serve a new statement of claim within four...