Multi-million Blackburn bus station court case: council wins

It had been sued by the administrators of Thomas Barnes and Sons Ltd over the premature termination of the contract to build the £8.4 million transport hub in Ainsworth Street, Blackburn.

In June 2015 the authority sacked the Bury-based firm after the project was plagued with problems and delays, running over its initial £4.7m budget.

The company then went bust and its administrators sued the council for £3m over breach of contract, reducing the claim amount to £1.7m at the doorstep of the technology and construction division of the High Court in Manchester.

On Monday, Judge Stephen Davies handed down his judgment holding that the council is not required to pay any money to Thomas Barnes and Sons.

The bus station was completed more than £3 million over budget

His decision followed an 11-day hearing in July.

The leader of Blackburn with Darwen Council Cllr Phil Riley, who took the decision to terminate the contract as borough regeneration boss, said: "I am obviously very pleased the decision we made several years ago has been completely vindicated.

"I am hopeful money owed to the council in terms of bonds will now be paid.

"We did not take this decision lightly but we had very strong legal advice that it was solid."

Judge Davies decided the council was entitled to terminate the contract with Thomas Barnes and Sons because of their delays in the construction of Blackburn Bus Station.

He also decided that its termination of Thomas Barnes and Sons' employment was valid.

The new bus station on the former market site was then completed by another contractor, Eric Wright Ltd.

Leader Phil Riley said the council has been 'vindicated'

The hi-tech glass structure finally opened on May 1, 2016, 16 months late and £3.7m over budget.

Judge Davies also ruled Blackburn with Darwen Council was entitled to offset the costs of employing another contractor to complete the bus station.

He concluded: "It follows that the claimant (Thomas Barnes) has no prospect of recovering anything in this litigation.”

Asad Laher, the council's deputy director of legal and governance, said: “The council is very pleased with the court’s judgement today, which vindicates the decision to terminate the contract with Thomas Barnes.

“The council only ever uses litigation as a last resort, as a way to resolve disputes and in this case always sought to avoid costly proceedings.

"However, faced with multi-million pound claims, which were meritless, we strongly defended the claim supported by expert legal advice.”

The council will now look to recover its costs in defending the claim.

At the time the contract was terminated Barnes directors blamed Blackburn with Darwen Council and bus station designer and project managers Capita for the problems with construction and the subsequent delays.

They called in lawyers to contest the sacking and claimed they had previously 'expressed our concerns over the bus station’s design'.

In November 2015 the company went out of business and was placed in administration, leaving the borough council facing an initial £900,000 loss - including £400,000 bond placed with a independent financial institution in case of problems.

The Lancashire Telegraph has attempted to contact the administrators of Thomas Barnes and Sons.