Business News
Ex-director denies being rude at meeting
A FORMER Tees Valley Regeneration
(TVR) director has denied
being "rude" or "unprofessional"
during a meeting over the
Middlehaven redevelopment, in
Middlesborough.
Chilli Developments Ltd
claimed in the High Court, in
London, that Peter James, then
director of development at TVR,
was so out of line during a meeting
on June 30, 2005, that he
scared off potential investor, the
Esh Group.
Chilli is suing TVR and its
national equivalent, English
Partnerships (EP) for almost
£10m, claiming breach of contract.
Barrister Philip Noble, for
Chilli, claimed that a rival was
encouraged to put in a bid for
land already assigned to Chilli,
that TVR and EP breached two
lock-out deals signed with Chilli,
that TVR and EP spoke to Allied
Irish Bank behind Chilli's back -
and that Mr James destroyed
their credibility with the Esh
Group.
Earlier in the case, Neil Griffiths
- a partner in project management
firm, Baker Mallett LLP,
which was contracted by Chilli -
testified that Mr James was
"rude" and "unprofessional"
during the meeting.
But yesterday Mr James, now
chief executive of the New Swindon
Company, told the court
that, although he had taken a
"robust" stance during the meeting,
he did not believe he had
acted in any way improperly.
"The meeting was business
like, there were some issues that
needed to be addressed, there
was some robust questioning,
but I was no more than robust,"
he said. "There was no heated
debate."
In cross-examination, Mr
Noble asked: "All pleasant and
cordial? No more than a family
discussion?"
Mr James replied: "I said it was
robust questioning and discussion,
and that was what it was .
It was no different from many
a meeting I went to."
Mr Noble then asked him:
"There was nothing to upset Mr
Griffiths or Chilli?"
Mr James replied: "Not from
my point of view. I didn't say anything
that would upset them.
These were businessmen supposedly
experienced in bringing
schemes like this to the table.
They should be used to full and
frank discussions."
The barrister asked Mr James
if he was suggesting that those
who had given evidence on behalf
of Chilli had "exaggerated" what
occurred at the meeting.
Mr James said: "I haven't read
all the witness statements, but I
stand by what I said."
Mr Noble had previously told
the court that EP invited tenders
from another bidder, Quintain,
during the lock-out period which
ran from October 26, 2004, until
April 21, 2005, and entered into
negotiations for the sale of the
property Chilli wanted to redevelop.
But giving evidence on
Tuesday, Peter Halsall, managing
director of Bioregional Quintain
- a joint venture between
Quintain and Bioregional Properties
Ltd - insisted there was
nothing sinister about the inclusion
of land assigned to Chilli in
a development proposal submitted
by Quintain in 2005.
He said all Quintain was trying
to do was "show creative ability
and skill" in its potential role as
the developer of the site and
added: "The Chilli land was not
available to us, that was made
very clear by TVR and EP."
Barrister Tom Leech, for EP
and TVR, has denied any wrongdoing
on his clients' part, and
has described the allegations
made by Chilli as "thin" with
"next to no evidence to support
them"
The case, being heard by Mr
Justice Jack, continues, and is
due to finish this week.
8:51am Thursday 8th May 2008
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