Norwich Union wins Bristol dispute

Norwich Union has won a legal dispute with a joint venture partner on a proposed £150m scheme in Bristol’s business quarter. Morgan J allowed the insurer’s claim against Strand Street Properties for failing to pay £643,353 as its share of the costs towards a scheme in St Mary-le-Port. The two companies each hold long leaseholds for 1-acre plots within the larger development site and, in 1998, held negotiations with freeholder Bristol City Council. During a five-day trial in January, the insurer alleged that a wholly owned subsidiary of Strand Street, London & Paris Estates, had agreed that the costs of working on the proposals until 2 July 2001 would be shared, but that it failed to pay its 50% share and owes £643,353 for outstanding fees and £300,000 in interest. Morgan J stated that Strand Street had authorised the agreement between the insurer and London & Paris and was therefore liable for the principal sum. London & Paris, which is in liquidation, was not represented and did not take part in the trial. Norwich Union Life & Pensions Ltd v Strand Street Properties Ltd Chancery Division (Morgan J) 20 May 2009. Wayne Clark (instructed by Berwin Leighton Paisner LLP) appeared for the claimant; Josephine Hayes (instructed by Hamilton Downing Quinn) appeared for the defendant.