Danny Williams claims victory over City of St. John's in Galway development spat

Danny Williams is claiming he's the winner in his fight with the City of St. John's over conditions attached to his huge Galway development in the city's southwest end, but the mayor denies it's a total victory.

The former premier filed an application with the Supreme Court of Newfoundland and Labrador in November. The civil suit argued the city had "exceeded its authority" in withholding additional building permits until Williams agreed to give up his right to take the city to court if any disputes arise.

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On Tuesday, Williams said a judge ruled in his favour by allowing him to challenge city decisions in court, instead of accepting the decision of an arbitrator.

"We basically applied to court on a number of issues. The primary one was that mandatory arbitration, which is in the development agreements, denies our right to sue," Williams said.

"The court has ruled that that requirement for mandatory arbitration in the development agreement is outside the jurisdiction of the city. Therefore, they gave us the declaration that that cannot be that case, that we can't be required to compulsory sign on to arbitration."

Williams had said withholding building permits meant the entire development was being held up, including the new Costco store that is expected to open this fall after relocating from Stavanger Drive.

Not a loss for city, mayor says

The court decision is not expected to drastically change how the city words its development agreements in future, according to St. John's Mayor Danny Breen.

Breen said the arbitration clause can still be included in those agreements, if the developer agrees.

"But we can't compel the developer to use the arbitration clause," said  Breen. "They have the opportunity to take court action if they so chose."

If developers choose to go the court route, that could slow down developments and make them more expensive, he said.

The mayor disputed Williams's claim that he was the victor in the legal tussle.

Breen said the court tossed out Williams claims that city staff acted in bad faith in developing the Galway project.

"The judge dismissed those as being unfounded and certainly I take great comfort in that and that staff are treating all developers fairly."

Williams was also denied court costs in Tuesday's ruling.

Truce reached before ruling

Despite getting what he wanted from the ruling, Williams said he has no current plans to further challenge the city in court.

"No, what we done, in January, in the interim, we got together with the city and said, 'Look, let's put this issue aside. Let's sign agreements in escrow pending the court decision,'" he said.

"When the court decision comes down, whatever that court decision is, will basically be transferred to the agreements. So those agreements, now, will have the arbitration clause removed."

He said that move allowed the development to proceed while the case worked its way through the court, including the site work to allow the planned Costco relocation.

Williams admitted the court challenge created bad blood between him and city, but he believes that doesn't have to taint the relationship as the development moves forward.