Bosses at Shetland Islands Council are being urged to get round the table to resolve a long-running dispute about the cost of repairs to Sumburgh Airport’s runway extension.
Highlands and Islands Airport Ltd (Hial) was recently granted a full hearing on its claim for damages against the local authority by the Inner House of the Court of Session in Edinburgh.
The decision raises the prospect of the council having to make a pay-out of £14million if the airport wins its legal challenge.
The airport firm raised its action in 2011 following a dispute over the runway extension, which became plagued by structural problems caused by the sea and wintry weather.
Hial contracted the council in 2005 to provide engineering works and services for the job.
But it later raised an action at the Court of Session in Edinburgh, which a judge last year allowed to go to a hearing of evidence.
Shetland Islands Council appealed against Lady Scott’s ruling, stating that much time had passed between the alleged failings and the claim being made, but the challenge was rejected.
Work to repair the runway is due to be completed this month.
Inglis Lyon, managing director of Hial, said that several weeks ago he wrote to the council’s chief executive inviting them to enter a process of independent mediation to bring the matter to a close.
Mr Lyon added: “I have not yet received a response from the chief executive but I would again reiterate my willingness to engage in an independent mediation process.
“I believe this can realistically be concluded before the end of this year. I would urge Shetland Islands Council to consider this approach in the interests of local taxpayers. The alternative is the continuation of a lengthy and costly litigation process which serves the interests of neither party.”
A Shetland Islands Council spokeswoman said: “This was a procedural matter as to whether Hial had complied with the relevant time limits. The resolution of Hial’s claim lies in the future, and the council continues to defend the action.”