Lidl is set for a showdown in the High Court with Generator Developments, which claims the German discount retailer exploited a joint venture agreement to secure a site in Brentwood, Essex.
Court papers filed by the mixed-use development specialist allege it was selected as preferred bidder for the site at Wates Way in March 2014 but allowed Lidl to complete the purchase on the basis of a joint venture agreement that was “well advanced”.
However, the deal, which would have seen Generator jointly develop the 2.4-acre site with Lidl, was subsequently “abandoned” by the retailer following completion, the developer alleges.
Generator claims there is legal precedent for it to claim equity in a land sale even though no contract was signed.
It claims that, if it wins its claim, Lidl could be forced to sell the site and split any profits.
A hearing on the case starts next week.
Generator managing director Paul Isaacs said: “This claim is not so much about the money but about the principle of trust. We entered into a relationship in good faith and hope that our example will give confidence to other small businesses who feel poorly treated by their erstwhile partners.”
A Lidl spokesman said: “We are unable to provide any information at this time and await the outcome of the hearing.”
Stephenson Harwood is advising Generator.
