Bindmans advises as 40 businesses moot action over London Olympics

A group of around 40 businesses has turned to Bindmans in a bid to tackle the organisers of the London Olympics over compensation.

Bosses at East London companies are planning a lawsuit against the London Organising Committee of the Olympic Games (LOCOG) over planned road closures and security restrictions that they claim will put hundreds of jobs at risk.

Bindmans public law and human rights partners John Halford and Paul Ridge have been instructed.

The companies, which range from transport business and cafes to garages and retailers, have each committed a small amount of money to a fighting fund to “set the ball rolling” on action against LOCOG over access to their premises, the alleged lack of a compensation plan for the impact on trading and a perceived failure to provide relocation packages for the worst affected.

The group, led by Graham Phelps of Hackney-based Phelps Transport, has asked Halford and Ridge to advise on their options.

These are believed to include formal mediation or a judicial review application on not offering compensation to firms outside the compulsory purchase zone.

Michael Spinks, managing director of Hackney-based food distributor Essex Flour & Grain Co, said his company is bigger than most and badly affected. He said his only option is temporary relocation.

He said: “All of us have monstrous transport issues. We’ve instructed Bindmans, who are happy to set the ball rolling because the legal route is something we may have to consider.”

Mr Spinks said he may also file his own individual claim against LOCOG.

He added: “I studied land law as part of my degree at Cambridge and I’m planning on reading up on it and taking the Olympics to a lands tribunal. This will be a test case – for the small people.

“I’ll represent myself. I’m arrogant – you have to be to stand up to the Olympics.”

LOCOG’s general counsel is Terry Miller, who was previously a partner at Goldman Sachs and general counsel of Goldman Sachs International. She heads a legal team responsible for providing advice on all operations.

LOCOG did not respond in time for comment.