The recent judgment delivered by the Supreme Court of Bermuda in
the matter of Harold J. Darrell highlights the possible
implications for secured creditors who fail to accurately disclose
their security interests in insolvency proceedings.
The circumstances of the case were unusual.
In October 2010, Joseph Wakefield, as executor of an estate,
granted a loan to Mr Darrell in the amount of $427, 259.47.
In May 2011, Mr Darrell executed a memorandum of deposit of
deeds agreeing to deposit the deeds to a property in Bermuda with
Mr Wakefield when he received them from the Bank of Bermuda Ltd,
which held a first mortgage over the property.
The bank refused to provide the deeds, so Mr Darrell's
obligation was never fulfilled.
