BURNLEY council could face a compensation bill of more than £500,000 after losing a trail-blazing county court test case against its market tenants.

A four-year battle between indoor market stallholders and their council landlords ended with Judge Philips ruling that tenants were owed compensation for disruption and financial loss caused by major improvement work at the market square over many months in 1995.

In the test case involving Granada Cafe owners Stephen and Patricia Wignall, heard over two days in county courts at Burnley and Lancaster in November, the judge found the council had broken its lease by allowing the main stairs to the first-floor "market in the sky" to be removed during the redevelopment.

The judgement, delivered at Carlisle county court, opens the floodgates to more than 60 other members of the Market Tenants' Association to sue the council for loss of trade.

Tenants' solicitor Roger Baldwin said total damages have been estimated at more than £500,000.

Judge Philips also awarded the stallholders' legal costs, estimated to be between £30,000 - £40,000 against the council.

In addition the local authority must meet its own costs, expected to be at least as high.

The level of compensation will be set by the court in the summer, unless a negotiated settlement is reached.

Mr Baldwin said today the judge had clearly indicated that other tenants would qualify for compensation.

It will now be for the local authority to settle with stallholders or take on individual tenants in the courts - and risk further substantial costs in each case.

Tenants' Association spokesman Paddy Brady said a further five cases were ready to go to court immediately, with many more to follow.

Mr Brady who has traded verbal blows with the landlord over rent and compensation disputes for many years said: "In boxing terms, we have ended round one with the council on the canvas.

"It is now for them to decide whether they come out for the next round or accept the defeat delivered by the court."

He said traders were angered by the fact that compensation had been paid to outdoor market stallholders but not a penny to the permanent tenants.

He revealed they had with-held service charges, amounting to several thousand pounds a week, since last March in protest.

Mr Baldwin said there had been substantial interference with trade throughout the £12.5million shopping centre improvements and these had had a disastrous affect on the market.

He expressed disappointment that the council had taken matters so far when the principle that compensation should had been settled three years ago.

In a council statement issued today Coun Philip Walsh, chairman of the public protection committee in charge of markets said: "The council is naturally disappointed with the outcome, but we will need to study the judge's ruling very carefully before we comment in detail.

"However, we have to remember that this case was only about the question of whether the council was liable. It was not about how much compensation should be paid.

"A lot of evidence was also very specific to Mr and Mrs Wignall's business and does not necessarily apply to other tenants."

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