News / HIAL seek mediation over runway dispute
SUMBURGH airport operators HIAL are seeking an out of court settlement over a £14 million damages claim against Shetland Islands Council for poor workmanship on a 2005 runway extension.
The request came as the Court of Session rejected a second SIC appeal against the claim last month, clearing the way for a full legal hearing at great cost to both parties.
In May HIAL managing director Inglis Lyon wrote to SIC chief executive Mark Boden asking the authority to enter a mediation process to settle the issue which has already costs the two public authorities large sums in legal fees.
The SIC has yet to reply to the state-owned airport operator, saying it has plenty of time to formulate its response as no court case is likely to happen for the next 18 months.
On Friday Lyon reiterated his willingness to engage in an independent mediation process.
“If we don’t this could roll on for another 18 months or two years when we could have this done and dusted before Christmas,” he said.
“I would urge Shetland Islands Council to consider this approach in the interests of local tax payers.
“The alternative is the continuation of a lengthy and costly litigation process which serves the interests of neither party.”
In response, Boden stressed that it was HIAL who had chosen to take the matter to the courts in the first place back in November 2011.
He added: “HIAL did write suggesting mediation without defining what they meant by that, so we are now considering that and we will get back to them in due course.
“Now that this is in the courts there is no rush as things do not happen quickly.”
Both the Scottish government and Shetland MSP Tavish Scott have urged the two sides to get around the table and settle the dispute.
HIAL says the SIC was responsible for failures in the £10 million runway extension, leading its eastern end to crumble in the face of heavy winter seas.
Two years ago the Scottish government forked out £12 million for HIAL to carry out repairs to the runway extension.
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