English Partnerships (EP) and Tees Valley Regeneration are being sued for £9m in a dispute over a £200m scheme at Middlesbrough Dock.
A High Court writ has been issued by Chilli Developments, a property company set up to carry out the Middlehaven project. This claims that EP breached an agreement allowing it exclusive rights to negotiate the contract.
Chilli says EP went back on the deal when it gave information to Quintain, a rival developer that was eventually appointed preferred developer.
Chilli says it had made a “lock-out” agreement with EP between October 2004 and April 2005.
Chilli adds that it spent large sums of money on the project, and obtained planning consent, and did so while relying on the lock-out agreement to protect its interests.
The Middlehaven project will include 750 homes, a hotel and retail and leisure outlets.
It has been designed by Studio Egret West.
It is being developed by BioRegional Quintain.