Financially troubled Thurrock Council has put legal action against a number of local authorities – including Gedling Borough Council – over a ‘disastrous’ solar farm investment on hold.
They had been aiming to recoup their money after losing more than £200m on a disastrous solar farm investment between 2017 and 2020.
It claimed that the non-profit organisation Association for Public Service Excellence, which advises members on improving public services, was “negligent” in misvaluing the assets.
In November, the council announced it was pursuing legal action against a sample of 23 councils who are members, as they all share legal liability.
West Lindsey District Council in Lincolnshire, Derby City Council, Bolsover in Derbyshire and Gedling in Nottinghamshire were among those named.
Thurrock council has now agreed to “stay” proceedings and focus on a separate legal claim against businessman Liam Kavanagh related to the investments.
The 23 named councils had appointed a barrister to represent them.
The widespread case threatened to tie up large sums of public money at a time when councils could little afford it.
Sally Grindrod-Smith, director of planning, regeneration and communities at West Lindsey District Council, said in November: “We are aware that Thurrock Council may be considering legal action against other local authorities, however no legal claims have been made against West Lindsey District Council.”
The APSE has defended its role, saying it “entirely rejected” the claims and its valuation was based on information provided to it.
Thurrock Council effectively declared itself bankrupt and issued a Section 114 notice when it sold the solar farms at a £200 million loss.
Thurrock leader, Councillor John Kent, had promised to leave “no stone unturned in its attempts to recover public money”.
