Chesterfield council still refuses to name parties in legal dispute over council houses exposed to toxic gas leak

The four Chesterfield Borough Council houses built on Rufford Close, at Boythorpe, Chesterfield, in 2019, had to be pulled down and the site had to be made safe during a costly episode following the detection of gases coming from a coal seam under the properties and reports of a suspected fire in the foundations.

Despite initial reports that a legal settlement had been agreed, the council confirmed it is still not satisfied with an adjudicator’s decision in the dispute between the council and an unnamed contractor and as the local authority contemplates further legal action a concerned resident has demanded to know who else is involved and what are the potential financial settlements?

Member of the public, Max Kerley, told a Full Council meeting on December 13: “My question relates, sadly, to the long-running saga of the council houses that were built and then demolished on Rufford Close, Chesterfield.”

He added that during a previous council meeting on October 18, the Council Leader, Cllr Tricia Gilby, stated the council had been able to settle the matter by arbitration so he now wished to know who were the involved parties and what financial settlement had formed part of any arbitration?

Cllr Gilby, had originally told the October 18 meeting that following legal proceedings she understood the council had been able to settle the matter by arbitration but at that time nothing had been formally released by the council about the identity of any other potentially involved legal party or about any of the amounts of money involved.

She had also said at that time that she would check with council officers about the outcome of the arbitration and mediation process.

However, not long after the October meeting, the Labour-controlled council confirmed it is in fact not satisfied with an adjudicator’s decision in the dispute between the council and an unnamed contractor so the local authority is now contemplating further legal action.

Cllr Gilby has also now told the latest Full Council meeting on December 13 that legal proceedings have not been completed and never has the matter been settled by arbitration and she has provided a written explanation to all councillors including Liberal Democrat Councillor, Glenys Falconer, who has been pursuing updates.

The Council Leader added that the council has not been satisfied with the current outcome so the council is pursuing further arbitration either through the courts or by other means to possibly recover any money that might be payable to the local authority.

Cllr Gilby also said that any adjudication and documents relating to the dispute and to the parties involved are ‘legally privileged’ and they cannot be disclosed.

After Mr Kerley further pressed the Council Leader to confirm the names of the parties involved in the dispute, Cllr Gilby said: “I think I made it clear why this information cannot be provided at this time.”

Cllr Gilby has previously stated that the coal below the footprint of the properties had been removed before construction, and an investigation had identified that elevated carbon monoxide gas and hydrogen levels had arisen from chemical reactions occurring within the infill material and not from the presence of an underground fire.

Carbon monoxide is a colourless, odourless, poisonous, flammable gas and the chemical element hydrogen is also described as a flammable, colourless, odourless, gaseous element, according to the Collins Dictionary.

Mr Kerley, has claimed that the council’s decision to have the properties built had cost Chesterfield tax-payers almost £1 million.

Cllr Falconer, has repeatedly asked the council whether legal proceedings had been completed, and whether the council would get compensation or if it would have to bear the full cost of the building and demolition of the properties?

She has stressed that she has been concerned about the cost of building and demolishing these houses, and that the public should be kept informed particularly when the council is facing an estimated £4m budget deficit for 2024/25.

The exact basis of the legal dispute over the council houses remains unexplained despite the matter involving a public body answerable to voters and tax-payers.

In addition, the contractor involved also officially remains unnamed at this time and any costs involved remain undisclosed as do any claims of possible, apportioned responsibility or liability – if any at all – associated with any party involved in the failed housing project.

The prospect or details of any possible financial payouts or settlements also remain undisclosed.

However, the matter is expected to have so far involved a large amount of money to cover costs, including the planning process, building of four houses, safety tests, demolition of four houses, site safety remediation, and legal expenses.