Ben Houchen-led development corporation could pay £4.9m in legal fees for upcoming court case

If the corporation, in charge of redeveloping the huge brownfield site of the former-Redcar steelworks, loses its case it will also have to pay legal costs incurred by PD Ports which currently stand at £2.16m.

Legal action was taken by STDC, which is controlled by the Tees Valley Combined Authority (TVCA), in April 2021 to establish whether PD Ports has rights of access across land it purchased via compulsory purchase order. The land in question includes the site of the historic steelworks that closed in 2015, as well as that at South Bank Quay where redevelopment is ongoing.

PD Ports argues it has historically had access across this land to their own holdings, including the quayside at Redcar Bulk Terminal and the South Gare lighthouse, to carry out their duties as Statutory Harbour Authority.

According to the documents in the pre-trial review, both sides agreed to the use of one expert witness, however PD Ports have made objections after it was revealed that STDC’s costs include commissioning evidence from at least two experts. Only evidence from one of these experts will be heard at the trial. Teesworks Ltd was added as a third party to the litigation in November 2022, following its purchase of 90-acres of land for £96.79 that STDC had paid to remediate.

The public-private company is at the heart of accusations of corruption after local property developers acquired a 90 per cent stake of the commercial entity that was previously 50-50 without paying. A government inquiry into governance and business arrangements between STDC, TVCA and Teesworks Ltd is currently ongoing, and expected to report its findings in August.

The land at South Bank Quay is surrounded by land owned by PD Ports, and as such can only be accessed via private roads owned by the port company.

Discussing this week’s pre-trial hearing, a spokesperson for PD Ports said: “From the outset we have offered STDC a nil cost solution to title and access problems relating to its land, which would have meant that any legal action was unnecessary.

“The amount of the estimated costs of the parties are part of the legal process and we are not in a position to comment.”

STDC declined to answer questions about its legal bill, or use of experts, due to the ongoing litigation.

Their spokesperson said: “The issue before the court is to seek a declaration as to whether or not PD Ports has any rights of access over the site. Only a declaration of fact from the court to provide certainty as to what rights each party may, or may not, have.

“It is essential we secure clarity to allow us to develop the site and give clean title to investors. This resolution is fundamental to the successful development of the whole site.”