Social housing company in £175k legal battle

Social housing company Level Cross is suing construction firm Mount Anvil plc in a row over a scheme to develop a site in London.

Level Cross planned to buy the former Grovelands School in Lemsford Close, north London, and Mount Anvil was interested in carrying out the construction work on the project, according to a writ issued in London’s High Court.

Mount Anvil claimed to be negotiating with Ujima Housing Group, and told Level cross of a value per habitable room which Ujima was willing to pay for a developed site.

Level Cross agreed that in return for granting Mount Anvil sole rights to be appointed as preferred building contractors, Mount Anvil would pay a fee of £175,000, and this was put in writing.

Ujima did not accept the costings for the project and withdrew from the scheme, and the development went ahead with Mosaic Homes with Mount Anvil as contractor.

Level Cross says that Mount Anvil should still have paid £175,000 but despite a demand for the money, Mount Anvil has refused to pay up. Now Level Cross, of north London, is suing Mount Avil, of St Albans, for £175,000 plus interest, or damages of the same amount.