Blackburn bus station saga leads to £1.7m claim against council

Blackburn with Darwen Council are being sued for up to £1.7m in damages by the administrators of Thomas Barnes and Sons Ltd over the premature termination of the contract to build the transport hub.

The Bury-based firm, which has since gone bust, were engaged to construct the bus station at a cost estimate of £4.7m, but the project was plagued by problems and delays.

In June 2015, the council sacked Thomas Barnes and Sons Ltd in what the then council regeneration boss and now leader Cllr Phil Riley described as "decisive action".

The firm alleges the breach of a contract between the two parties which was signed on November 4, 2014.

The council says it believes the claim "has no merit".

The new Blackburn bus station completed in 2016

The new bus station on the former market site in Ainsworth Street in the town centre was then completed by another contractor, Eric Wright Ltd.

The hi-tech glass structure finally opened on May 1, 2016, 16 months late and £3.7m over budget.

At the time the contract was terminated Barnes directors blamed Blackburn with Darwen Council and bus station designer and project managers Capita for the problems with construction and the subsequent delays.

They called in lawyers to contest the sacking and claimed they had previously "expressed our concerns over the bus station’s design".

In November 2015 the company went out of business and was placed in administration, leaving the borough council facing an initial £900,000 loss.

Now the administrators for Barnes have started a case for compensation from Blackburn with Darwen Council at Manchester High Court over the termination of the bus station contract.

It was now Council leader Phil Riley who sacked Barnes and Son

They are understood to be seeking a payment of up to £1.7m from the authority which is fighting the case on the basis of expert legal advice.

Today key witnesses on behalf of the collapsed company and its administrators are expected to start giving evidence.

The claim against the council alleges it:

• failed to provide instructions required by the claimant;
• failed to provide the claimant with extensions of time;
• failed to provide responses to questions asked of it by the claimant;
• failed to pay sums due and owing to the claimant under the contract;
• failed to properly value the works carried out by the claimant under the contract;
• wrongfully served notices upon the claimant on April 1, 2015, April 10, 2015, and on April 12, 2015; and
• wrongfully terminated the contract by way of a notice given on June 4, 2015.

The claim also alleges the council failed to pay Thomas Barnes and Sons Ltd losses and expenses.

It asks a High Court Judge for damages for breach of contract by Blackburn with Darwen Council and compensation and interest.

A Blackburn with Darwen Council spokesperson said: “We are limited in what we can say on anything which is subject to ongoing legal action.

“Whilst the Council only ever uses litigation as a last resort as a way to resolve disputes, we strongly defend any claim that we believe has no merit and is supported by expert legal advice.”