Harrogate-based developer Montpellier Estates has launched legal action against Leeds City Council (LCC) after it was unsuccessful in its bid to build a new entertainment arena.

According to the Yorkshire Evening Post, the company is now poised to issue deceit proceedings against the local authority, which revealed the new Leeds Arena would be built in Claypit Lane. Montpellier Estates argued that LCC had "actively concealed" plans for the development by not including Claypit Lane on the shortlist of potential sites.

However, an LCC spokesperson said: "Montpellier Estates has indicated that they may seek an injunction to prevent Leeds City Council from entering into any contract for the development of the Leeds Arena. "In view of this the council took pre-emptive action at the High Court last week to strike out this and other aspects of their claim, to ensure that the much-needed Leeds Arena can progress as planned."