One Norfolk council has launched legal proceedings against another, claiming its poor legal advice has obliged it to spend more than £1m on an ill-fated village hall being built by a third authority.
The extraordinary row centres on an ambitious Easton Parish Council project which has hit huge setbacks since work began several years ago and is now millions of pounds over budget.
It has now been escalated to the High Court after South Norfolk Council (SNC) - which oversees major projects in its district - claimed it was provided with substandard legal advice from County Hall while contracts were being drawn up.
SNC claims it was not made aware it would be obliged to fund the community centre.
But it says it has handed out hundreds of thousands of pounds to the project because it found itself legally required to do so.
It is now seeking more than £1m in compensation from Norfolk County Council to offset these losses.
VILLAGE HALL SHAMBLES
Easton, on the outskirts of Norwich, is one of the fastest-growing villages in Norfolk, with hundreds of new homes planned for the area.
To meet the needs of the growing population, Easton Parish Council launched its plans to build a multi-use community centre in Marlingford Road to replace its existing village hall in October 2021.
The centre is designed to include offices, a bar and kitchen, changing facilities, and a main hall suitable for activities including badminton, yoga, gymnastics, martial arts, concerts, discos, meetings and cinema screenings.
The ambitious project - to build a village hall around three times the size of the one it will replace - has hit several hurdles since work began, pushing up the price tag by millions of pounds.
It remains unfinished.
FUNDING FEUD
The scheme was initially forecast to cost around £1.5m but councillors now believe it will come to a total of more than £3m.
The cost was expected to be covered through various loans, co-investment with South Norfolk Council and Community Infrastructure Levy (CIL) money - a charge which can be levied by local authorities on housing developers who are building in the area.
But South Norfolk Council has now launched a legal battle against Norfolk County Council's in-house legal department - which advises local authorities - for failing to draw attention to contractual details which required South Norfolk to provide funding for the scheme.
This resulted in South Norfolk Council being legally obliged to give Easton Parish Council a £500,000 grant and access to various funding pots, totalling more than £1m.
SNC is now seeking compensation from County Hall - which it deems to be responsible for these losses.
The case has been taken to the High Court but is yet to be heard by a judge.
STATE OF PLAY
Despite significant financial support provided by SNC, there remains a large funding gap in the community centre project.
Members of Easton Parish Council say this has left them in a "dire" situation and warned the authority could "go bankrupt" if a solution is not found.
They have agreed to approach SNC for additional funding as it struggles to repay some hefty government loans and pay remaining costs related to the building.
An SNC spokesman has previously said: "Easton Parish Council is a statutory body in its own right, and we have limited jurisdiction over its operations or decisions.
"However, we have been made aware of the issues Easton is facing, and we are currently supporting them in understanding the scale of their problems and exploring their potential options moving forward."
The parish councillors, most of whom were not members when the project was conceived several years ago, said they hoped to find a "positive way forward" for the village by working alongside SNC.
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