BURNLEY FC director Brendan Flood and a bailed-out bank yesterday resumed a High Court battle over the escalating costs of their multi-million pound legal row.

The two parties blame each other over the collapse of part of Mr Flood’s property empire two years ago, including several high-profile shopping centre developments.

Anglo Irish Bank launched a £35million writ in 2009 over alleged personal guarantees on loans relating to sites in Wakefield and Blackpool.

But that was followed soon after by a £250million counter-claim filed by Mr Flood, the Clarets’ operations director, and business partner James Riddell, who claim Anglo Irish withdrew loan facilities.

That move prompted the collapse of their Modus Ventures company and some of its subsidiaries, say the partners.

Yesterday, Mr Flood and Mr Riddell began an appeal against a High Court judge's decision to refuse to order Anglo Irish to pay £250,000 into court up front as security for legal costs of the impending trial.

Mr Justice Teare ruled earlier this year that the bank, which was bailed out by the Irish government in 2009, should not be ordered to make the payment because the two cases raised the same issues.

Mr Flood and Mr Riddell are now asking three of the country’s most senior judges, Sir Nicholas Wall, and Lords Justices Rix and Moore-Bick, to overturn that ruling.

However, Anglo Irish said there was no reason to believe it could not meet the costs if ordered to do so later.

George Bompas QC, for Mr Flood and Mr Riddell, said Anglo had ceased lending to the pair as a result of its collapse and subsequent bail-out.

The hearing continues but a judgement is not expected until later this year.

Modus Ventures, which was also behind a shopping centre in Wigan, collapsed in June 2009.