Leeds Council wins £2m costs after arena court battle with businesswoman Jan Fletcher

Sitting in the High Court in Leeds yesterday, Mr Justice Supperstone made the award against Ms Fletcher’s property company Montpellier Estates Ltd (MEL).

In awarding the interim costs – pending a decision on the total amount to be paid – Mr Justice Supperstone said: “I am left in no doubt that the claim for deceit should never have been brought.”

He ordered MEL to make the interim payment within 28 days and turned down their application for an appeal on the procurement element of their failed case against the council.

Montpellier Estates lost its £43m damages case following a nine-week hearing in February.

The company had put forward a £70m bid at a site known as ‘City One’ in a council competition to find a developer for the arena in 2007.

The council later cancelled the competition and developed the arena itself on Claypit Lane.

Montpellier Estates made accusations of fraud and dishonesty against senior council officers and former council leader Andrew Carter which were later dropped or dismissed.

Malcolm Simpson, of Walker Morris, solicitors for Montpellier Estates, said yesterday: “Today was the first stage of an appeal process and we anticipated that Judge Supperstone would refuse our right to appeal. Montpellier Estates will now be taking this through the normal appeal process, which is to the Court of Appeal.”

Mr Justice Supperstone said in February that the council was entitled to end the competitive tendering exercise when other bids were found not to be good value for money and then develop the arena itself.

Council leader Keith Wakefield, said: “We welcome the judge’s decision and council taxpayers will be pleased to hear that we are well on the way to recovering £2m of public money and will now be looking towards further recovery of our costs, which were well in excess of £4m.”

Council chief executive Tom Riordan added: “We also note the judge’s comments about his feeling that the deceit claim should never have been brought in the first place. This further reinforces the integrity of the council’s conduct on the decision to cancel the competition to develop the arena.”