Two businessmen who have been forced to file for bankruptcy, after a council planning error saw them lose money on an investment, have had their legal case for compensation dismissed by the High Court.
Bill Schiavone and James Fawcus were initially granted permission by Worthing Borough Council to renovate a local care home, and they then secured money which they invested into the project so they could carry out the necessary work.
Not long after work began, however, the council withdrew permission, claiming that a paperwork error meant approval had been wrongly given.
The council’s failure to include a full summary of reasons and policies as part of the official process for granting permission – a legal requirement at the time – meant that a nearby resident had grounds to launch a judicial review against the site.
However, because the men signed a ‘consent to quash’ order – even though they argued that the council tricked them into doing so – it was decided by the High Court that they had technically signed away their right to any compensation that could have been given.
The pair hoped they would be able to convince a Judge to agree that they had unfairly been coerced into signing an agreement, so they could be entitled to statutory compensation.
However, their recent appeal was also rejected and, with legal costs of £30,000 incurred, each of the men has had no choice but to declare bankruptcy.