A High Court judge has thrown out a developer’s attempt to claim damages from English Partnerships over its unsuccessful bid to develop part of the 40-acre Middlehaven development site in Middlesbrough.
Local developer Chilli Developments was suing English Partnerships (EP) and Tees Valley Regeneration (TVR) for almost £10m in loss and damages for allegedly going back on a 2004 “lock-out” agreement relating to the redevelopment of five acres of the site.
In November 2006, TVR signed a deal with BioRegional Quintain to develop a 1m sq ft mixed-use scheme at the site of the former
Architect Will Alsop masterplanned the £200m scheme to include over 800,000 sq ft of offices, around 500,000 sq ft of leisure facilities and 750 homes.
In January 2007 Chilli sued, alleging that during the lock-out period EP, induced by TVR, invited tenders and entered into negotiations with Quintain for the sale of the property.
Chilli also alleged that TVR spoke to Chilli’s lender, Allied Irish Bank, behind Chilli’s back and that EP and TVR undermined, insulted and ridiculed Chilli in the presence of a potential backer, with the result that the backer pulled out.
This morning Justice Jack said: “The main allegation made in this action against EP and TVR and so also against their representatives was of serious misconduct, namely that together they had led Chilli along to believe that it had a real chance of entering a development agreement with EP when there was no chance because the negotiations were a sham.”
The judge went on to say that that allegation was not supported by the documentary evidence and accordingly Chilli’s claim must be dismissed.
