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Judge dismisses Derwent ‘bad faith’ allegations

 


A high court judge has dismissed allegations made by Derwent Holdings that Liverpool council acted in “bad faith” in making a traffic regulation order (TRO) in November 2006 which “adversely” affected its Edge Lane retail park.


 


However, Mr Justice Collins went on to criticise Liverpool’s planners for failing to properly publicise the changes to Edge Lane.


 


Accordingly, he made a declaration that the TRO procedure had not been complied with and Derwent, which is owned by Isle of Man-based tycoon Albert Gubay, must be allowed to apply to the council to modify the order.


 


Derwent claimed the TRO cut off access, thwarted a redevelopment scheme and put businesses in jeopardy at the retail park.


 


The council denied bad faith and claimed that the purpose of the order, made on the application of Liverpool Land Development Company, was to create an urban boulevard into the centre of Liverpool and to ensure road safety.


 


Mr Justice Collins said there had been a failure to give adequate notice to Bermuda-based Derwent, its UK subsidiary Fairhurst Property Services or its directors about the introduction of the TRO which banned right turns into the park.


 


The judge ruled: “Since I have concluded that the defendant council was at fault, it must consider properly an application to modify [the TRO] on its merits and must bear the cost of any modifications which would have resulted had the objections been made at the material time.”


 


Rejecting Derwent’s claim that there had been “bad faith” on the part of the council, Mr Justice Collins said: “It seems clear to me that those responsible were concerned to do as little as they could to comply with the law.


 


“The hope was that no objections would be made to delay the TRO and so the improvement of Edge Lane in aesthetic terms. There was no intention to break the law.”


 


christian.metcalfe@rbi.co.uk

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