Leeds City Council (LCC) has expressed disappointment at the High Court's decision to allow a legal claim by Montpellier Estates relating to the city's proposed arena development.

The local authority had asked for part of the developer's challenge to be struck out, although the Honourable Mr Justice Eady ruled that the company should be give an opportunity to argue its case. Montpellier Estates launched its legal action against LCC after it was unsuccessful in its bid to secure the contract to develop Leeds Arena, which is set to be built in Claypit Lane.

According to the developer, the council "actively concealed" its plans for the venue by not including the proposed site on the initial shortlist. LCC insists the site only became available after the tender process. Mr Justice Eady, however, did confirm that Montpellier Estate's bid to obtain an injunction to prevent the council agreeing a contract would be unlikely to succeed. A LCC spokesperson said: "We welcome the judge's confirmation that there is little likelihood of Montpellier being granted an injunction against the council to stop it agreeing a contract for the development of an arena.

"The council had concerns that Montpellier Estates might try and get an injunction preventing us from signing a contract with a developer - that's why we took the decision to go to court."