Douglas Council has lost an appeal against a decision not to strike out a civil claim for alleged negligence and malicious prosecution.

The move is the latest twist in a long-running legal dispute between Douglas Corporation and Richard David Bellamy over dilapidated Braddan Lodge on Quarterbridge Road.

In August 2017, Douglas Council issued a claim against Mr Bellamy over unpaid rates of £856.

The council subsequently withdrew the claim, but not before Mr Bellamy issued a counterclaim for £50,000 damages, claiming ’malicious prosecution, negligence, deceit and misfeasance in public office’.

That claim related to a notice issued by the local authority in 2014, giving Mr Bellamy six months to complete unfinished building works.

Mr Bellamy’s appeal against the notice was dismissed as was a 2015 doleance claim.

In his counterclaim, Mr Bellamy argues that the notice was not valid because it was not lawfully authorised.

In September this year Deemster Sharon Roberts dismissed the town hall’s application for strike out or summary judgment in relation to the counterclaim.

She ruled that the counterclaim has a ’realistic prospect of succeeding’.

Douglas Council has now lost its appeal against the decision not to strike out the counterclaim. In a judgment, the appeal court ruled that Deemster Roberts was entitled to exercise her discretion.

They said an abuse of process defence remains open to Douglas Council at trial once witnesses have given their evidence.