A development company is claiming damages of up to £90m against two Manx government departments.

The claim by Sondica Group Inc relates to its ultimately unsuccessful bid to redevelop the North Quay site in Douglas.

Its claim against the Department of Infrastructure, Treasury and London-based consultants Lambert Smith Hampton states that the amount claimed is more than £50m.

But at a directions hearing that took place in the high court on Wednesday, Sondica’s advocate Vicki Unsworth gave a figure for the damages sought as being between £50m and £90m.

The focus of the court case expected to be heard later this year will be on how Sondica went from being the preferred bidder to having its bid rejected.

The dispute dates back to early 2015 when the Department of Infrastructure (DoI) invited expressions of interest in the development of 3.17 acres of land on Lord Street and Parade Street, which included the former bus station site.

It was described as a ‘unique development opportunity’.

Douglas-based Sondica acted as part of a consortium of businesses known as the North Quay Consortium which put together a tender for the development.

Lambert Smith Hampton was appointed by the DoI as professional advisers to assess the bids received.

Sondica’s first tender, submitted in September that year, involved a £55m investment which included a Marriott ‘Courtyard’ Hotel, a four screen cinema, a Marco Pierre White New York Italian restaurant, a Winter Gardens, new bus station facilities, a multi-storey car park, nine apartments, 55,000 sq ft of office space and small retail units.

Its tender was placed on a shortlist of three.

Approval was sought from then DoI Minister Phil Gawne to appoint Sondica as the preferred bidder.

But then in March 2016, the Chief Minister’s regeneration steering group rejected its tender bid and decided to start a new tendering process.

This decision came after the DoI, whose evaluation team had previously agreed Sondica had the best bid, claimed that the consortium now required government to provide an ongoing financial guarantee believed to £1.9m a year.

The consortium denied it has revised its bid or that government grant funding was required.

In July 2016 a fresh call for interested bids was issued by the DoI.

Kane Limited, which submitted an offer of £600,000, far below Sondica’s initial one of £4.1m, went on to secure the tender - despite it having been rejected at an early stage in the first round.

Sondica’s claim alleges ‘undue pressure’ was put on Lambert Smith Hampton by an officer in DoI to change its independent expert opinion on what was the best bid which resulted in it not being recommended as a preferred bidder.

In March 2017 a paper delivered by the DoI to the National Steering Group requested a decision to discount the bid from Sondica as it was deemed to be ‘very high risk’ - and approve the one submitted by Kane Ltd instead.

Sondica is claiming damages for breaches of contract and duty as well as losses, plus interests and costs.

It alleges ‘negligent misstatement’ against an officer in the Treasury for describing the request for a guarantee as ‘irregular’ and having the potential to compromise the tender agreement.

It also alleges misfeasance in public office against a named individual for which it says the DoI is vicariously liable.

Much of the discussion at this week’s directions hearing centred on the disclosure to the claimant of confidential documents related to the Kane bid.

Deemster Andrew Corlett told the court that he ‘nearly fell of my chair’ at hearing the £500,000 cost estimated to review the 150,000 documents relating to the case.

Kane Limited’s proposals for North Quay never went ahead.

There is no suggestion of any wrongdoing alleged against Kane Ltd.

New proposals, submitted by developers Wyyttavin Ltd, have now been submitted for a mixed-use development including a multiscreen cinema, offices and 85 flats.

Controversially, one of the planned apartment blocks could be up to 14-storeys high, making it one of the tallest buildings in Douglas.