AN airport has insisted that taxpayers will not have to foot the bill for a six-year legal battle.
Newcastle International Airport Ltd (NIAL) was left with a legal bill thought to be in the region of hundreds of thousands of pounds after its prolonged negligence claim against law firm Eversheds ended in the Court of Appeal last week.
The court ruled that the law firm had breached its duty of care by not issuing memos properly explaining the impact of an £8.5m bonus deal for two airport executives.
But the airport was awarded just £2 in nominal damages after the court decided the failure would not have caused the airport to incur substantial losses.
Further hearings were due to take place to determine who would pay the legal bill arising from the case.
However the airport tonight issued a statement saying it "notes the decision of the Court of Appeal in respect of costs associated with NIAL’s appeal in its proceedings against Eversheds.
"Whilst disappointed at this outcome, NIAL wishes to highlight that in conjunction with its solicitors it put in place at the onset of this litigation a range of measures, including legal expenses insurance, designed to ensure there will be no call upon company finances, or the public purse, as a result of these proceedings."
The airport is majority owned by seven councils including Durham County Council.
The company said that Newcastle Airport was a critical component of the region’s economy which already supported thousands of jobs and made an economic contribution of £640m, which was set to double by 2030.
The statement added that a new management team at the airport was working with local authority and private shareholders "to deliver new air routes, significant capital investment and an award-winning regional airport for the North-East."
Share