A row over Liverpool’s New Chinatown has been thrown out of court.
The case arose after Liverpool City Council blocked North Point Global and the China Town Development Company from making any further purchases connected to the development.
LCC took the group to court in order to issue a ‘winding up petition”‘ against them for monies owed in respect of the New Chinatown project.
It is understood that the Council racked up legal bills in this case that have already cost the tax payer around £100,000.
Craig Griffiths, the director of China Town Development Company Ltd, said: “Throughout this whole dispute China Town Development Company Limited have offered to complete the purchase of the Phase 2 lease so long as this was then granted to them but the council have always refused this offer.
“Instead they have chosen to make gain from adverse media reports simply suggesting that the company owed them a million pounds and were seeking to renege on the deal, this was never ever the case.
“The council have already received nearly £1.45m from the company in respect of the Phase 1 and 2 leases and the company have invested a further £10m in the overall project.
“The council’s intention here seems to be to take Chinatown back into their ownership but quite simply this is never ever going to happen.
“They have sold their interests in the project to Chinatown Development Company Limited and no matter the public money they seem intent on wasting, no court proceedings are ever going to give them the land back.
“No doubt Liverpool City Council will attempt to make light of today’s judgement by Mr Justice Barling but it sends a clear message to them that the courts will not tolerate inappropriate litigation.
“The Directors have made it clear that it is their intention to dispose of their interest in the Chinatown project.
“They can either do this harmoniously or in tandem with Liverpool City Council (thereby better assuring delivery of the development to the overseas buyers and the city) or whilst mired in expensive and unnecessary litigation (which will only cost the city’s tax payers more).
“It is their hope that the council choose the former option but if not then further proceedings will also be vigorously defended.”
The council have faced criticism following the outcome of Tuesday’s case, notably from Liverpool Liberal Democrats leader Richard Kemp
“Today’s damning indictment in the China Town court case comes as no surprise given the lack of competence shown in the earlier dealings with those behind this development,” said Cllr Kemp.
“The judge has thrown out the council’s case for an injunction and basically has said to the council that they must go back and negotiate with North Point Global.
“Instead the council, which already racked up £100,000 of legal costs so far in addition to their earlier ‘normal’ costs, now seems to be suggesting an appeal against this excoriating judgement against them.
“This will clearly be a case of throwing more [good] money after bad. The taxpayers of Liverpool are currently now £1,050,000 down on the deal and our losses are mounting by the day.
At the last council meeting in Mid-November, the Lib Dems asked searching questions about this and other property deals and got no intelligible reply.
“We repeat our demands that the Council seek external commercial and legal help both with these deals and before they sign another legal agreement or contract.
“We simply do not have the in-house capacity to handle big deals like this.
“When I was in China two weeks ago, several Chinese mayors came over to me to discuss what has happened in Liverpool in particular and the UK more genially.
“The tide of good will in terms of Liverpool based investment is clearly turning against us”.