The Isle of Wight council has defended spending hundreds of thousands of pounds of taxpayers’ money on legal fees for the Floating Bridge settlement — only to keep the outcome a secret.
Last month, the Isle of Wight council announced it had reached the end of legal mediation with the boatbuilders and architects of the £3.2 million Floating Bridge 6.
Plagued with problems
Since the vessel came into service in 2017, it has been plagued with breakdowns, engine failures and mechanical problems which have led to a range of repairs and time out of service.
To try and recoup some of the money it has lost, the Isle of Wight council launched legal action against Burness Corlett Three Quays (Southampton) and Mainstay Marine Solutions.
£366,389.10 on legal fees
Now, a Freedom of Information request has revealed the authority spent £366,389.10 on legal fees since the action commenced in 2017.
A breakdown of figures shows £258,934.50 was spent on external lawyers and £107,454.60 for disbursements, including technical expert witnesses costs and counsel fees.
Any settlement reached at mediation may include costs
A council spokesperson said mediation processes are generally conducted on the basis each party in the dispute pays its own costs, but any settlement reached at mediation may include costs.
The council said it was unable to comment upon the specific case.
IWC: Avoided complicated and highly expensive High Court
In the defence of spending hundreds of thousands of pounds on legal fees, however, the council said it was,
“Mindful and pleased that it has protected Island residents’ council tax, avoiding a long drawn out, complicated and highly expensive High Court case with inherent litigation risk that would have been necessary had mediation been unsuccessful.”
IWC: A satisfactory outcome
A spokesperson said,
“The legal fees incurred in satisfactorily resolving the highly technical and complicated dispute have been part of the overall process since delivery of the vessel and were necessary to approach a satisfactory outcome, which has been achieved from a council perspective.”
Terms of settlement confidential
The amount reached in the settlement is unknown, but the council said the terms of the settlement should remain confidential and no party would make any further statement.
The use of a non-disclosure agreement in the settlement was justified by the council leader, Cllr Lora Peacey-Wilcox, after she said it was the difference between deal or no deal although it left a bad taste in the mouth.
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
Image: © Isle of Wight Council
