Stay of proceedings agreed in £40m compensation claim brought by Thurrock against 23 councils
A multi-million pound claim brought by Thurrock Council against 23 member councils of the Association for Public Service Excellence (APSE) has been paused following an agreement between the parties to stay proceedings.
Thurrock issued proceedings against the 23 local authorities last year, alleging that the association provided "negligent" valuations of solar farm assets that it says led it to invest millions in bonds. APSE's management said the APSE associate who prepared the valuations stood by his calculations.
The council had issued a separate claim against the business man behind the venture, Liam Kavanagh, three months prior in an attempt to claw back £150m in investment funds that the council claims were misused.
Kavanagh has strongly denied the allegations.
The suspension in proceedings against APSE is intended to allow Thurrock to reach the final determination in the Kavanagh case, according to a letter sent last week (20 February) by APSE to its member authorities.
The letter, written by the association’s chief executive, Mo Baines, said: "Whilst APSE continues to reject the premise of Thurrock’s claim, and the absurdity of action against other local councils, the stay to proceedings withdraws the immediacy of the litigation risk against other APSE member councils.
"As the trial date listing against Mr Kavanagh is currently unknown, and with the likelihood then of a lengthy trial process due to the complexity of issues, it is unlikely that APSE will be able to provide any further updates in the near future."
A number of councils caught in the litigation have hit out at Thurrock's claim, describing it as "disappointing" and "unjustified".
Thurrock’s leader Cllr, John Kent, meanwhile said it was forced to pursue individual councils because “APSE didn't have adequate insurance or protection in place”.
A spokesperson for Thurrock Council confirmed that the courts have now approved the council's application for a stay of proceedings, with the consent of all parties.
The statement added that the stay allows Thurrock to prioritise the recovery of public money through its claims against Liam Kavanagh.
Adam Carey
