A holiday company co-owned by a council leader has been ordered to pay damages and costs of more than £1,100 after failing to market a cottage.

Mr Recorder Gargan, sitting at Teesside small claims court in Middlesbrough, found that Country Cottage Holidays, of Hawes, was in breach of contract with Janet Stocks, who owns the cottage at Grinton, near Reeth.

He agreed with the complainant that the company, co-owned by John Blackie - a county councillor, leader of Richmondshire District Council and a member of the Yorkshire Dales National Park Authority - and Margaret Reynolds, had failed in its duty to offer the cottage to prospective clients last year.

Ms Stocks, who lives in Amsterdam, agreed a verbal contract with Mr Blackie for his firm to manage and market the cottage in February 2000. Ms Stocks later terminated the management side of the agreement.

She said the cottage was not accurately represented in the holiday brochure.

Mr Gargan reduced her claim for £2,800 in compensation for loss of bookings to £500.

However, her complaint against the firm for unsatisfactory management of the property was dismissed. Mr Blackie did not dispute an outstanding account of £265.75 owed to Ms Stocks after he ended their verbal contract last November. Ms Stock was awarded a total of £1,129.25 in damages, costs and expenses.