Fletcher given more time to pay up

JAN Fletcher has been given a further two weeks to settle costs over her failed legal action against Leeds City Council after an initial offer was rejected by the authority.

Lawyers for the former Montpellier Estates chairman said that an offer was made yesterday following her unsuccessful High Court case against the city council  over the site of Leeds Arena, but it has not been accepted.

Fletcher’s barrister told a bankruptcy hearing three weeks ago that an offer would be made within 14 days, however, today, her legal representative told Harrogate County Court that Fletcher, who did not attend the hearing, has an opportunity to put forward a revised offer to pay the £2m outstanding costs she owes the council.

Leeds City Council was represented by barrister Carly Sandbach.

The case has been adjourned to the first available date after 14 days.

In October, a judge gave Ms Fletcher four weeks to pay £2m in interim costs, but she missed the payment deadline.

Leeds City Council brought the bankruptcy action saying it had a duty to recover the money on behalf of council tax payers.

When a person is made bankrupt they are required to hand over their assets to a trustee such as the official receiver who then handles the sale of their assets, which could include their home, in order to pay their debts.

In October, a High Court judge gave the council permission to pursue the former Montpellier Estates Limited (MEL) chairman personally for its costs defending her failed court bid.

Mr Justice Supperstone issued an order that Ms Fletcher pay the costs before November 14, pending a final decision on the total amount due.

This was after he agreed an application from the council at the High Court in Leeds to join her personally into its claim for costs against MEL.

The council’s application was based on an earlier personal undertaking from Ms Fletcher to cover the costs should the company be unable to do so.

It emerged that she gave the written undertaking to the council in July 2012, guaranteeing payment in the event of MEL both losing the case and not being able to pay up.
Mr Justice Supperstone had originally handed down a ruling in February dismissing entirely claims in damages for alleged deceit and flawed procurement under European regulations brought by MEL against the council.

The dispute centred on the 2007 tendering process for the Leeds Arena when MEL put forward its 10-acre “City One” site, in Holbeck, as a potential location.
MEL had already prepared and put in its bid when, in November 2008, Leeds City Council terminated the process. The council went on to build the arena on a site off Claypit Lane.

The judge said that the council was perfectly entitled to bring the competitive tendering exercise to a close when other bids were found not to be good value for money and then develop the arena itself.
The original hearing took place in London’s High Court over nine weeks towards the end of 2012.