Taxpayers could face legal bill over council homes row
DEVELOPER IS STARTING PROCEEDINGS AGAINST COUNCIL PAIR
Local Democracy Reporter TAXPAYERS are being asked to foot the legal bills of Northumberland’s council leader and chief executive in the face of proposed action by a disgruntled developer.
In May, serious allegations were made by Lugano over the ‘unlawful’ way the county council handled its Jackson and Mrs Lally OBE in respect of application for the Dissington Garden action proposed by a former employee’. Village, a development of up to 2,000 The indemnity would be restricted to homes near Ponteland. £10,000 at first, but could be extended
These were refuted by the local in tranches of £15,000 ‘if it is reasonaauthority which described the claims ble’ for the council to do so. as ‘inappropriate, untrue and defamaHowever, the indemnity would not tory’. apply for any action committed ‘which
The Newcastle-based company also is outside their authority from the alleged wrongdoing by several individcouncil; where their actions were uals before recently announcing that it fraudulent, deliberately wrong or reckhad issued formal legal proceedings. less or not authorised by the council;
The local authority responded to this were outside the powers of the council; latest turn of events by saying that it or where the matter exceeded their believes ‘that the own powers and it council has acted was not reasonable lawfully and reasonfor them to believe ably throughout this that their actions process’. were within those
A report adds that powers’. ‘the council has Plus, if a court engaged external finds that the trio solicitors (Anthony ‘behaved impropCollins Solicitors) in erly, illegally and respect of this claim outside their which it believes is authority in relation without merit on the to the developers, evidence that has then the council is been provided to entitled to be date by the claimrefunded all costs ants’. paid out under the
Now, the council’s indemnity’. decision- making Any costs recovcabinet, made up of ered during the members of the legal process would Conservative administration, is being also have to be repaid to the county asked to approve legal indemnities for council. council leader Peter Jackson, chief Coun Grant Davey, leader of the executive Daljit Lally and cabinet Labour group, described it as ‘a permember for planning John Riddle at its verse position’ for Northumberland’s meeting on July 24. taxpayers to be picking up the tab for
These would be capped at £10,000 serious allegations against wealthy initially and would also not apply if Tory politicians and highly-paid officers.‘theiractionswerefraudulent,deliberately wrong or reckless or not authorHe added: “This is a significant ised by the council’. moment in the history of our county
The recommendation is that an and it will be judged harshly when the indemnity is provided to Coun Jackson facts, not spin, are tabled. and Riddle and Mrs Lally ‘for the pur“This is why the MPs Ian Lavery and poses of obtaining independent legal Ronnie Campbell and I are correct to advice and representation in respect of demand an independent inquiry into the action proposed by the developers the actions of this Tory-led administraof the Dissington Garden Village, and a tion and its failure to come clean when similar indemnity is provided to Coun asked the simplest questions.”