Compensation fight firm looks at appeal

Jun 20 2008 by Graeme King, The Journal

A NOVICE developer which was soundly defeated in a £10m compensation battle with two major regeneration agencies is now considering an appeal.

Chilli Developments, based in Middlesbrough, was told by a High Court judge on Wednesday that its bid to sue English Partnerships and Tees Valley Regeneration over the £500m Middlehaven development site had failed.

The judge, Mr Justice Jack, criticised the evidence given by Chilli in the case as “thin” and said the allegations from the company that EP and TVR negotiated “in bad faith” to include Chilli in the scheme did not stand up.

But yesterday a statement from Chilli said the company was “extremely disappointed” at the result of the court case, and was discussing a possible appeal with its legal team.

Chilli said it was now considering whether it wanted to carry on in business in Middlesbrough.

English Partnerships said yesterday that if there was the possibility of legal action re-starting, it would not comment on the matter. Tees Valley Regeneration also declined to comment.