CASH strapped Inverclyde Council’s final bill over its failed bid to flatten Clune Park could top £1 million according to sources close to the case.

The local authority — currently wrestling with the prospect of slashing £22.5m from public services — has already agreed to fork out more than £200,000 in expenses to property owners at the rundown Port Glasgow housing estate.

News of the courtroom payout and a second legal defeat for the council came ahead of an emergency behind-closed-doors meeting of the authority’s communities committee, at which Clune Park was the only agenda item.

A senior council source told the Telegraph: “It is expected that the final cost of this folly will top £1 million.

“The council is like a losing gambler, chasing losses by throwing good money after bad.”

The Telegraph revealed in August how a report on the local authority’s attempt to bulldoze the privately-owned housing scheme was thrown out by Sheriff Derek Hamilton, who declared that its evidence for doing so was ‘inadequate’ and ‘tainted’.

He delivered that ruling on six agreed test cases out of a total of more than 270 appeals against demolition orders which had been issued by council officials in June 2014.

Despite that decision, Municipal Buildings chiefs spent more public money on bringing a further batch of cases before the court — which have now also been rejected.

In his second written judgement Sheriff Hamilton states that ‘there was nothing before the court to support the defender’s (council’s) decision to serve demolition orders initially, or to have them remain in place’.

The Telegraph can reveal today that the council partially based its latest court hearing on seven properties which it itself owns and which ‘had been allowed to deteriorate’.

Sheriff Hamilton declared in his new ruling that the council’s argument had already been ‘completely undermined’ by the original test cases.

He states: “There was no evidence to replace the discredited evidence.”

Now senior Inverclyde councillors are calling for a halt to the costly legal saga.

Conservative member Cllr David Wilson, whose ward area includes Clune Park, said: “I am, frankly, having followed the case, not totally surprised by the sheriff’s judgements.

“The minute you start losing money like this, it’s time to talk with the landlords about the way forward.

“There is never any harm in talking.

“Sometimes you just have to swallow hard and talk.”

Mr Wilson added: “I think that the council’s basis for declaring the buildings below tolerable standard has been found to be inadequate. Obviously the specialist engineers employed by the landlords have come up with more convincing evidence than the council’s engineers.”

SNP group leader Chris McEleny said: “For years I have been calling at committee for a ‘Plan B’ regarding Clune Park.

“We’ve put all our eggs into the one basket assuming that we would win, but the fact is that we have now lost twice and, from what I’ve been told, lost badly.

“Hundreds of thousands of pounds of scarce taxpayers’ money have been spent on litigation.

“There is no doubt that something needs to be done regarding the quality of housing, but if the council is tied up in court that housing will stay in the same condition as it is in right now and nothing will be improved.”

In his original findings, Sheriff Hamilton, inset, pointed to a succession of inconsistencies in the evidence provided by building expert David Turnbull, who compiled two reports which the council relied upon in order to issue its demolition orders.

Mr Turnbull — who was a partner with Greenock structural engineering consultancy ATK — stated that corrosion of steel reinforcements had led to expansion of the alloy which had significantly weakened buildings.

But after that conclusion — which was reached after a walk-round survey — was challenged, he changed tack and declared that the reinforcements had become ‘de-bonded’ from concrete roof beams.

Sheriff Hamilton dismissed Mr Turnbull’s evidence as ‘unscientific, speculative and selective’.

The sheriff said: “I find it surprising that he could reach his conclusions, and also maintain them in his second report, without ever having been inside any of the properties, or having been on the roofs.”

A second Municipal Buildings source, who declined to be identified, said: “When you look at the expenses involved in the original test cases, with further expenses and costs to come, not to mention the tens of thousands of pounds which must have been spent on the now many reports commissioned to back up the council’s case for demolition, it’s not hard to see that we’re talking in terms of £1 million or more.” 

Inverclyde Council today maintained its position on the condition of Clune Park, but hinted that it may now be looking at alternative ways to resolve the situation.

A spokesman said: “Properties in Clune Park continue to be below the tolerable standard.

“The council will be examining every avenue to deliver on the required improvements to housing standards and the long term regeneration of the Clune Park estate.”