City law firm Kendall Freeman has lost its high court bid to stop Land Securities carrying out its £150m New Street Square redevelopment.
The court refused to grant an injunction to prevent construction of an 18-storey building as part of the 691,000 sq ft office and retail scheme at 11-23 New Fetter Lane, EC4.
However, Mr Justice Peter Smith said damages for interference with Kendall Freeman’s rights to light at its 43 Fetter Lane offices, as well as the compensation to landlord Midtown, were “likely to be substantial”.
LandSec will face a damages assessment hearing in November. Part of the damages may include a share in the developer’s profits.
In a joint statement, Kendall Freeman and Midtown said that they were “pleased” that the court had upheld their rights to light, but “disappointed” that they were awarded damages rather than an injunction. They intend to appeal against the decision.
Mike Hussey, managing director of LandSec’s London portfolio, said the developer was “very pleased, overall”.
He said: “We welcome and respect the views of those who may be affected and wherever reasonably practicable, we try to deal with their concerns. It has been our experience that a mutually acceptable solution can usually be found.
“We will be renewing our invitation to Midtown and Kendall Freeman to discuss the issue of compensation.”
References: EGi Legal News 21/1/05