Hastings Borough Council is facing up to a million pound compensation claim after it lost its appeal over the closure of Hasting pier.
The council said it was 'bitterly disappointed' by the decision which will see it facing compensation and legal costs. The council used emergency powers to close the pier in June 2006 after the owners Ravenclaw failed to carry out safety work.
The compensation was bought by Manolete Partners PLC, who operated the bingo hall and amusement arcade on the pier and went into liquidation in late 2011.
The council said it still believes it was right to close the pier after an independent report highlighted a number of serious structural defects, which meant it may no longer be safe for public use. A disco for 500 young people was due to take place just days after the council received the report, but Ravenclaw declined to close it to the public.
The council warned that this ruling could cause other councils to avoid using emergency powers in case they face their compensation claims, and is now calling on the Local Government Association to lobby the government for a change in law.
The Appeal Court noted in its judgement: 'The true culprit, Ravenclaw, is outside the jurisdiction and effectively beyond the reach of any enforcement procedures. The court is faced with the familiar problem of deciding which of the surviving partners should bear the loss caused by the culprit.'
