Montpellier in High Court over Leeds Arena

ENTREPRENEUR Jan Fletcher’s Montpellier Estates (MEL) is suing Leeds City Council in the High Court for damages over its decision to develop Leeds arena on land not previously on a shortlist.

Harrogate-based Montpellier is also set to issue deceit proceedings against the council.

This is on top of its original claim the local authority breached European Union procurement rules.

Both Montpellier, which wanted to build the arena on land at Sweet Street, and developer GMI, which submitted plans for the scheme at Elland Road, saw their proposals overlooked for a site in Claypit Lane in Leeds, despite the Council never having previously said the location was under consideration.

As exclusively revealed by TheBusinessDesk.com in 2008, Leeds City Council bought land from Leeds Metropolitan University and decided to develop the land itself.

In papers lodged at the High Court, Montpellier claims the decision cost the firm “many millions of pounds of losses” and claims the local authority breached European Union procurement rules.

Montpellier claimed the council had, unknown to it, been pursuing its own development plans for more than a year before rejecting the private company bids.

The High Court was also told that Montpellier alleged the Council was developing its own plans during the tendering process but covered them up using an “audit trail”.

Leeds City Council “vigorously denies” the allegations but is not challenging them, as it claims Montpellier became confused on EU contract rules.

In a statement Jan Fletcher, chairman of Montpellier Estates, said Montpellier did not want to discuss the details of the case but confirmed it involves the tender process behind the choice of venue for Leeds city arena.

Ms Fletcher said: “I believe this case is of critical importance to the successful working of Leeds. These days public/private partnerships underpin the success and growth of any major UK city and Leeds is no exception.

“European law sets out clear rules for large scale procurement to ensure it is fair and transparent for every business taking part. The business community needs absolute confidence in the procurement process so they can weigh up the genuine risks.”

Ms Fletcher added: “I have always been passionate about Leeds and Yorkshire and want only the best for our region. I am still 100% committed to helping the city grow, become internationally competitive and recognised for its cultural, sporting and business strengths.”

Leeds City Council said in a statement: “Montpellier Estates Limited have indicated that they may seek an injunction to prevent Leeds City Council from entering into any contract for the development of the Leeds Arena.

“In view of this the council took pre-emptive action at the High Court last week to strike out this and other aspects of their claim, to ensure that the much-needed Leeds Arena can progress as planned.”

Mr Justice Eady reserved judgment in the case.