PD Ports criticises Teesworks for continuing "totally unnecessary legal action"

The six-week High Court trial last Autumn determined PD Ports had rights across land bought via compulsory purchase process by the public South Tees Development Corporation (STDC), chaired by Conservative mayor Ben Houchen, to their own land holdings.

The letter was written the day after Teesworks Ltd, the 90 per cent privately-owned company initially set up as a 50-50 public-private partnership, filed papers at the Court of Appeal for the case. Teesworks Ltd, run by Chris Musgrave and Martin Corney, were added as a third party to the action after they exercised an option to buy land which was subject to the litigation.

STDC is not appealing the outcome.

Mr McConnell confirms the port operator has so far received £1.3m in interim costs from STDC and Teesworks Ltd, with “further reimbursement to follow.”

“A public-private partnership,” the letter states, “which was apparently set up to attract inward investment continuing with what has been shown to be totally unnecessary legal action does not show the Tees Valley in a good light.”

A letter written from Lord Houchen to PD Ports CEO Frans Calje in April 2019 is attached to highlight the public sector’s initial position before deciding to launch legal action two years later.

Lord Houchen explains after the pending compulsory purchase, “STDC do not intend to interfere with your continued occupation or to materially affect your day to day operations.”

The Yorkshire Post has seen leaked internal legal documents from STDC dated February 2021, only two weeks before papers bringing the legal action were filed at the High Court, in which barrister Richard Matthews KC writes “the Corporation does not dispute” rights of access existed across two of three access routes successfully defended by PD Ports in court.

Another leaked document seen by The Yorkshire Post shows an agreement between STDC and Teesworks Ltd in which cash received from PD Ports for access across the Teesworks site would be split 50-50 between the parties.

Two weeks before last year’s trial PD Ports offered to settle by only claiming access to those two routes, however this was rejected. According to judge Mr Justice Rajah, the outcome of the trial had “substantially beaten that offer.”

As a result he ruled STDC and Teesworks Ltd were to pay 80 per cent of PD Ports’ legal costs until the date of that settlement offer, and 100 per cent of their costs thereafter. “Had that offer been accepted, significant costs would have been avoided,” he said in court.

On filing their appeal, a spokesperson for Teesworks said: “Teesworks Limited will not be making any further comment on the case until the completion of the Court of Appeal process.”