Southmill Properties Group Limited tried to get debts of nearly £300,000 thrown out – but the court ruled the money must be paid.
The huge sum related to a total of 14 liability orders secured by the Council for properties on Wilson Street and Linthorpe Road.
Teesside Magistrates’ Court heard that more than £222,000 was owed on The Grand Astoria building on Wilson Street, and a further £72,000 on the Linthorpe Road premises, with some of the debt dating back as far as 2015.
The court rejected Southmill’s claim not to have received a single summons in nine years, and heard that issues relating to the outstanding business rates had even been aired in a local newspaper.
The court also ordered Southmill to pay £32,000 towards the Council’s costs.
Councillor Nicky Walker, Middlesbrough Council’s Executive member for Finance & Governance, said: “We will always do all we can to support businesses in Middlesbrough, but this case sends out a clear message that we will also pursue unpaid debts on behalf of the public.
“Our officers have worked tirelessly to recover these significant debts which have been outstanding for a number of years. I’m delighted that with the support of our auditors Veritau and their investigations work that the courts have been robust in support of our approach.
“This was an exemplary investigation and I hope it will act as a strong deterrent to other businesses who think they can evade their obligations.”
