Torridge District Council’s High Court defeat to auctioneers Kivells over the Holsworthy AgriBusiness Centre has cost the council almost £1.3million.

The council had been taken to court by Kivells Limited, with a claim that they lost money because of an ineffective animal effluent treatment system at the new £6m Holsworthy AgriBusiness Centre they lease from Torridge.

HHJ Jonathan Russen QC in his High Court judgement published last year ruled in favour of Kivells, and at a full council meeting earlier this month, damages and costs against the council were revealed.

Cllr Simon Newton had asked for a for a breakdown of all costs borne by Torridge incurred as a result of the legal dispute, including any and all legal, compensation, maintenance, commission and court-directed costs over the duration of the dispute, as well as an estimate of total officer time incurred.

In response, he was told that the total costs were £1,281,695.20, comprising of a compensation settlement of £525,448.71, costs for Kivells of £434,608.00, and Torridge’s costs of £321,638.50.

READ MORE: Reaction from Kivells over Holsworthy Livestock Market court case

Asking his question, Cllr Newton said that while others would like this to be ‘gone and buried’, he was concerned around the need for transparency over taxpayers’ money and that the figures needed to be in the public domain.

He said: “This sum, when you include the officer time provided, that rises to just over £1.3m. Before Covid-19, that was over ten per cent of our capital worth, and we don’t have any unallocated reserves.

“Given the fact this was a significant loss and drain on council money and it lasted over several administrations, will there be any form of follow-up or investigation to try to learn lessons from it so we avoid a repetition?”

In response, Cllr Ken James, leader of the council, said that while it goes back over many years, before he was in charge of the council, lessons have been learnt.

“I cannot assure anyone it won’t happen again but we have learnt some heavy lessons from inheriting it and we certainly don’t want to repeat it.”

Steve Hearse, the council’s chief executive, added: “The case to which this refers was considered at a meeting of full council in February 2020 where councillors approved to conclude, by mutual agreement of the case between Torridge Council and Kivells around the Holsworthy livestock market.

“The costs were paid and accounted for in the last financial year 2019-20 and therefore do not present the council with any further ongoing financial pressure.

“Councillors expressed their wish at that time to draw a line under the case and move forward with a positive relationship with Kivells, which has progressed well since February.”

The new £6m Holsworthy Livestock Market in Holsworthy opened for business in September 2014 when the first market saw over 4,000 animals pass under the hammer.

Since trading began, the Holsworthy Livestock Market has seen a £2m turnover increase, along with a “marked” rise in the value and numbers of livestock passing through the pens each week.

The numbers of calves and stirks being sold at the market have increased by 2,000-head per year since 2014, with store cattle up by 3,500-head, fat sheep by 7,000-head, store sheep by 4,500-head and cull ewes by 3,500-head.