The council says that in addition to a long running dispute of Whitby harbour finances a similar objection has now been raised in Scarborough.
The long running legal dispute over how income from Whitby harbour should be spent won't be resolved before the borough council is abolished.
Councillors have been told the matter is unlikely to go to court until May at the earliest.
The issue resolves around the 1905 Whitby Urban District Council Act which states that income from Whitby harbour should be used within the harbour.
The Fight4 Whitby pressure group is claiming that hasn't happened.
Scarborough Borough Council says it is currently “finalising evidence” regarding the Whitby Harbour legal dispute and “envisages” a three-day hearing to be held on the matter.
The borough council’s head of legal and governance - Carol Rehill - told the authority's overview and scrutiny committee;
“At the minute we are trying to reach an agreement with the objector’s solicitors on the areas of dispute and consequential directions, which means that we may not require a case management conference which is currently envisaged to take place in May 2023.
“The dates for the hearing will then be set after that. I cannot at this point say with certainty when that hearing will be, but we envisage that it will be a three-day hearing.”
The head of Legal and Governance also told councillors that a similar complaint has now been made in relation to Scarborough harbour.
Carol Rehill - says both claims revolve around historic local legislation.
Both cases are set to be ongoing when Scarborough Council is abolished on April 1 as part of a local government shake-up which will see the creation of a new county-wide North Yorkshire Council.
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