Runway dispute: court rejects SIC appeal

THE DISPUTE between Sumburgh Airport operator HIAL and Shetland Islands Council over a flawed runway extension at the islands’ main airport looks set to go to a full legal hearing.

On Tuesday three judges at the Court of Session in Edinburgh rejected the SIC’s appeal against a damages lawsuit from HIAL for £14.21 million plus interest.

HIAL is seeking damages because of what it says were defects in the design of the extension, which faled to stand up to the rigours of Shetland’s winter weather.

The council was awarded the contract in early 2005, and it had argued that too much time had passed before HIAL lodged its action in November 2011.

SNP and Liberal Democrat politicians have both urged the two parties to reach an agreement out of court.

HIAL managing director Inglis Lyon said: HIAL welcomes the decision and will now consider how best to proceed.”

An SIC spokeswoman acknowledged that the appeal court had ruled against the local authority in what it described as a “technical legal matter”.

“The issue before the Court of Session was whether or not the airport authority was time-barred from raising a claim for payment,” she said.

“HIAL initially raised the court action against the council claiming, among other things, defects in the design. The decision on this preliminary matter means that the case is likely to proceed to a full hearing. The council will not comment further at this time.”

On a visit to Shetland in December, Scotland’s transport minister Derek Mackay said he wanted HIAL and the SIC to find an “amicable settlement” to the dispute.

Earlier in 2014 isles MSP Tavish Scott described the situation as “ludicrous”. He said: “This is a pointless legal case. It can’t be in anyone’s interest and is a waste of public money. It is effectively a dispute between two different arms of government.”