Two councils will next week decide whether to appeal a landmark court ruling which left them than more than £7.5million out of pocket.
Last year the Duke of Fife, who is the Queen’s cousin, won a battle with Aberdeenshire and Aberdeen City councils to slash a developer contribution bill for his Chapelton of Elsick development from £8million to £287,000.
Lawyers acting on behalf of the Elsick Development Company (EDC) – of which the duke is director – went to the Court of Session in Edinburgh in April to argue that the demand was unlawful, and won.
The duke had been in the dispute with Aberdeen City and Shire Strategic Development Authority (SDPA) since 2013.
However the Supreme Court has now given the SDPA leave to appeal the decision by the Court of Session.
And the planning authority will decide whether or not to proceed with the appeal when it meets next Wednesday.
It comes as Aberdeenshire Council agreed to set aside £110,000 worth of “covering costs” for the appeal process, should the SDPA chose to progress with it.
Aberdeen City Council has agreed a similar amount.
They want the developer to pay millions towards infrastructure improvements throughout the north-east via the strategic transport fund (STF).
Speaking at Aberdeenshire Council’s policy and resources committee, head of infrastructure services Stephen Archer said the SDPA would make a decision on whether or not to give the “green light” to an appeal next week.
He added: “You will be aware the council has been given leave to appeal in relation to the STF. The view clearly will be the SDPA need to have assurances that any cost would be underwritten by Aberdeenshire Council and the city council.
“The cost is in the region of £110,000, and can be financed from unspent allocation. The request here is asking that we can provide that assurance that should that SDPA decision proceed, money is allocated to fund that process.”
Aberdeen City Council’s finance convener Willie Young said: “The city council position is absolutely we want this to go to the Supreme Court. We want to set out the argument as to why we think the Court of Session is wrong.
“Councils going to court is very, very unusual, however the circumstances at Chapelton of Elsick is really, really significant for the people of Aberdeen and Aberdeenshire.
“The only people that lose out are the citizens.
“We really need to make that case.”
The Duke of Fife, director of the Elsick Development Company, said: “We have been notified of the decision of The Supreme Court to consider the appeal and are surprised. The Inner House of the Court of Session was clear in its judgement on the case and in refusing leave to appeal.
“We remain very confident in the strength of our case but are disappointed that we have to go through the argument all over again.”
