Shopping centre developer Multi Corporation is entitled to just £2 damages following the collapse of the sale of its Summer Row scheme in Wolverhampton, the high court has ruled.
Multi was in court seeking damages after having to pull the forward sale of the scheme to a consortium of Northern Irish investors when the buyers could not provide bank guarantees.
While the court ruled in favour of the developer, it awarded nominal damages as it was probable that Summer Row would not have been developed even if the bank guarantees had been provided.
Justice Lewison said: “I conclude that Multi has failed to establish that it is more probable than not that the project would have gone ahead, even if the Northern Irish investors had produced the requisite bank guarantees. In short, Multi has failed to prove that the breach of contract by the Northern Irish investors has caused any loss.”
He went on to find that, if the project had in fact gone ahead, the “worsening market in Wolverhampton” meant that Multi would have suffered an £81m loss.
Multi terminated the sale in February 2009. Summer Row development has subsequently been abandoned.
The £300m Summer Row, which got consent in 2006, was to include 600,000 of shops and 152 flats.
