Supreme Court dismisses challenge to Government by Devil's Tongue developers

The Supreme Court has dismissed a legal challenge by property developers Hepta Ltd over the Government’s decision to withdraw support for a development at Devil’s Tongue.

The multi-storey residential and commercial development had been approved by the DPC, subject to traffic and environmental conditions.

Hepta already leases a prominent site at the northern end of Queensway, just west of Waterport Fountain, formerly home to Casa Antonio, a car dealership and the Bahia Bar.

The company hoped to incorporate adjacent Crown land into a larger development scheme, and engaged with officials and ministers over several years in pursuit of this. Outline planning permission and then full planning permission was granted by the Development and Planning Commission. However, the Government, as landlord, withdrew its initial support for the plan.

Hepta claimed it had received consistent support and had invested significantly in project plans that included a multi-storey building. Hepta said that throughout this period, the Government had raised no objection to the proposed height or bulk, only to later reject the scheme on those very grounds. It argued this reversal was procedurally unfair.

Although Chief Justice Anthony Dudley held it was more likely than not that the government had approved the revised plan, he found there was no legitimate expectation that the lease for the extra land would be granted or a premium would be negotiated. He said the Government was entitled to change its policy and reassess its position on the development.

He said he could understand why Hepta felt aggrieved, but that there was no procedural unfairness or irrationality in the Government’s decision-making process. He dismissed the claim in full.