Property Giant Defeated in Major Legal Clash
Property developer Peel has suffered a significant defeat in the High Court after losing a multi-million pound legal battle with fellow developer Romal Capital. The case centred on Peel's flagship Liverpool Waters regeneration project, specifically concerning land at Central Docks adjoining Waterloo Dock.
The Core of the Dispute
Romal Capital, which has already built hundreds of residential properties within the Liverpool Waters scheme, brought the case against Peel alleging breaches of an agreement for the lease of land at Central Docks. The central argument presented by Romal was that Peel had violated their contract by submitting multiple planning applications that directly conflicted with Romal's proposed housing development.
According to Romal's legal team, Peel's actions made it significantly more difficult for them to obtain their own planning permission for what was planned as a 646-unit development, or an alternative 538-unit scheme. Peel had consistently denied any wrongdoing and mounted a full defence when the hearing began at the High Court Business and Property Courts back in May of this year.
Court Findings and Judge's Ruling
In a judgement delivered by Mr Justice Fancout, the court found decisively in Romal's favour. The ruling stated that Peel had breached its contractual obligations in multiple aspects. Crucially, the property giant was found to have failed in its duty to assist Romal in obtaining planning permission and did not support Romal's planning application at all.
Instead, the judgement concluded that Peel had pursued amendments to the outline planning permission for Liverpool Waters that would likely benefit its own future developments but made it very difficult for Romal to secure permission for its substantial residential projects. Mr Justice Fancout determined that these breaches caused Romal to lose a real and substantial chance of obtaining planning permission, assessing the probability of success at 60%.
The judge rejected Peel's argument that there was no realistic chance of Liverpool City Council's planning committee or a planning inspector granting permission for the larger development.
Damages and Next Steps
While the court has established liability, the exact amount of damages has not yet been calculated. The judgement acknowledges that Romal's assessment of potential development profits is essentially accepted, though certain calculation elements require adjustment.
The parties' experts have been directed to work on these financial adjustments, with a further hearing scheduled to determine the final damages amount and decide who will bear the legal costs of the claim.
Responding to the judgement, a spokesperson for Peel Waters said: We acknowledge today's judgment and are disappointed with the outcome. We remain committed to the successful delivery of Liverpool Waters and will now take time to review the judgment in detail before considering our next steps.
The spokesperson added that their priority continues to be working collaboratively with partners to bring forward new homes, jobs and investment for Liverpool.
