A SENIOR figure at Tees Valley Regeneration (TVR) launched a "very, very rude" and unprofessional tirade during a key meeting concerning the Middlehaven redevelopment in Middlesbrough, it was claimed at London's High Court yesterday.

Chilli Developments Ltd said TVR went so over the top at the meeting, on June 30, 2005, that a potential multi-million pound investor was scared off, helping to end the company's interest in the Middlehaven regeneration project.

Chilli is suing TVR and its national equivalent, English Partnerships (EP), for about £10m alleging breach of contract.

Barrister Philip Noble, for Chilli, said TVR and EP breached two "lock-out" deals signed with Chilli, spoke to a major bank behind its back, and "undermined, insulted and ridiculed" the company in the presence of potential investors, The Esh Group, at the meeting on June 30.

Yesterday, Neil Griffiths, a partner in project managers and quantity surveyors Baker Mallett LLP, which worked for Chilli on the project from 2003, said he was left shaking with anger by the attitude at the meeting of TVR's then director of development, Peter James.

He alleged that Mr James had repeatedly and unfairly claimed Baker Mallett would be unable to deliver the development project.

Giving evidence, Mr Griffiths said: "I can't recall exactly what Mr James said."

However, he insisted that his words had been "unprofessional and very, very rude", and amounted to a "tirade".

Mr Griffiths said: "The accusations that were made were completely unfair and uninformed. It was like a tirade.

"I don't understand why he said we were unable to deliver the scheme, which was unfair, untrue and unsubstantiated. If he was so dissatisfied, then why didn't he mention it beforehand."

He added: "I was shaking when I came out of the room. I thought it was unfair. It was specifically Mr James. I don't remember anyone else making any adverse comments."

But barrister Tom Leech, for TVR and EP, said the agencies both disputed what went on at the June 30 meeting.

"The EP and TVR witnesses will give evidence saying they remember something slightly different,"

he said.

The case continues.