Luton Property developer Bellcross Co Ltd is involved in a High Court dispute with North Hertfordshire District Council over a deal involving land owned by the council at Whitwell, Hertfordshire.
Bellcross claims that it is entitled to the return of £235,000 paid to the council in May 1998 as a deposit for the purchase of freehold land to the south and east of Bradway, Whitwell, Hertfordshire.
The payment followed a successful tender for the site by Bellcross, which was accompanied, under the terms of the conditions of tender, with a development plan. Bellcross alleges that the development plan was accepted by the council as complying with their development guidelines.
However, Bellcross says that, despite using its best endeavours, it was unable to obtain planning permission for the site by October 1998, and under the terms of the contract is entitled to the return of its deposit.
Rejecting the claim, the council argue that acceptance of the tender did not constitute any warranty that the plans submitted complied with development guidelines.
The council also contend that Bellcross did not use its best endeavours to obtain planning permission by October 1998. Among other things, they claim that Bellcross failed to answer requests by the councils planning officer for further information about proposals for the inclusion of affordable housing on the site.
Counsel for the local authority, Morag Ellis, argued that if the council were found liable for the return of the deposit, they were entitled to set off upwards of £400,000 against that sum for, among other things, loss of capital receipt on resale of the land and legal fees that had been incurred.
The hearing continues.
Bellcross Co Ltd v North Hertfordshire District Council Queens Bench Division (Mr Christopher Purchas QC, sitting as a deputy judge of the division) 18 December 2000.
Andrew Gore (instructed by Foreman Laws, of Hitchin) appears for the claimant; Morag Ellis (instructed by the solicitor to North Hertfordshire District Council) appears for the defendants.
PLS News 21/12/00
