A JUDGE has ruled in favour of East Dunbartonshire Council on “a number of matters” in a dispute with developers over a payment of more than £14million, writes Caren McPate.
The case surrounds the former Bearsden Academy site in Morven Road and the amount being chased has risen to a whopping figure of just under £19m with interest added.
In 2007, the council entered into an agreement to purchase the St Andrews College site from the University of Glasgow to build the new Bearsden Academy.
The council agreed to sell the Morven Road land to developers Gladedale to build new homes at a cost of £25m.
But the council said Gladedale breached the contract in 2009 when they told them they would not be able to pay the final instalment of £14m on the agreed date.
Gladedale suggested making phased payments if the council waived the indexation payment.
However, Gladedale deny saying they would not be able to pay the final instalment and in fact would have been able to pay on the due date had the council vacated the land by the agreed May 3.
Gladedale claim the council was in breach of contract for failing to move from the site by this time and the agreement had come to an end.
But the council said when it became apparent that the new school would not be ready by May 3, they decided against moving from the site because Gladedale had told them they couldn’t make the payment.
East Dunbartonshire Council’s case against Gladedale was heard at the Court of Session in Edinburgh last week.
The council is seeking £18,906,178 from Gladedale, which includes interest and index-linked payments, in exchange for the site. Lord Glennie ruled that the council was not in breach.
An East Dunbartonshire Council spokesperson said: “A judgement has been made on various legal matters in our case against Gladedale/Bett Homes.
“The judgement is in the council’s favour on a number of these matters. There is a further hearing later this week and we will be in a better position then to make a fuller statement.”
A spokesperson for Gladedale said the company was unable to comment subject to the continuing legal process.