Council wins legal case against HIAL

THE COURT of Session has on Friday ruled in favour of Shetland Islands Council in the dispute over who is liable for fixing the crumbling Sumburgh airport runway extension.

Last week, airport operator Highlands and Islands Airports Limited said it was seeking £2.5 million from the council for urgent runway repairs.

In 2006, HIAL and the SIC worked together on the £10million extension to the runway, with the council designing and managing the works.

However, since then parts of the east side of the extension, exposed to vicious winter storms, have eroded due to the onslaught of the elements, and are in need of major engineering work.

After a judicator had ruled the council was liable to pay for the works, managing director Inglis Lyon was confident HIAL would win the case in the Court of Session.

But on Friday, Lord Menzies ruled in favour of Shetland Islands Council saying the previous adjudication decision was unenforceable as it had arisen from a breach of natural justice. 

A council spokesman said: “The council was the designer of the runway and is confident that at all times fulfilled its obligations to HIAL.

“When the runway was being procured, budget limitations meant that HIAL had to accept a higher ongoing maintenance obligation for the runway rather than a much higher initial capital expenditure.

“In more recent times HIAL has refused to accept that this compromise had been reached.”

Mr Lyon was not available for comment on Friday afternoon. Instead HIAL put out the following short statement: “HIAL has received the decision today and will be reviewing the available options over the next two or three days.”

The SIC added that it was satisfied with the outcome, and remained committed to finding an amicable solution to the situation, “as it cannot be in the public interest for it to continue”.

The spokesman added: “Contrary to the earlier reports, Shetland Islands Council engaged with HIAL at length and we had earlier worked very well together in the design, procurement and construction of the runway.

Lord Menzies’ ruling can be found at:
www.scotcourts.gov.uk/opinions/2012CSOH12.html