Council settles £220m DLA Piper dispute after inquiry cites systematic failings and costly tram delays.
Edinburgh City Council has settled a £220m legal dispute with global law firm DLA Piper, drawing a line under years of litigation linked to the city’s tram project.
The case followed the delivery of Edinburgh’s first tram line, which ran around three years late and cost roughly £300m more than originally forecast. The council alleged it had been misadvised about the risk associated with the scheme in its early stages.
A public inquiry in 2023 said the project was marked by a ‘litany of avoidable failures’, pointing to breakdowns in oversight, governance and delivery.
The local authority has confirmed the legal action was concluded in March 2026 for an undisclosed sum. The council had originally sought £220m in damages.
In a report to councillors, deputy monitoring officer Kevin McKee said the litigation had been ‘resolved out of court’ and restated strong criticism of how the project was handled.
He described ‘serious and systematic failings which…could be described as organisational incompetence’, and said the council had failed to oversee key aspects of the project.
The report also highlighted a lack of effective supervision of the delivery body responsible for the tram scheme.
Inquiry chair Lord Hardie previously found the project suffered from ‘poor management and abdication of responsibility on a large scale’, which had ‘a significant and lasting impact on the lives and livelihoods of Edinburgh residents’.
Council leader Jane Meagher said the authority had since made ‘significant changes’ to improve governance and project management. She acknowledged past mistakes and apologised for the disruption caused.
She added: ‘One thing we won’t apologise for, however, is building a tram system, or our ambition to develop it further.
‘Edinburgh is Scotland’s capital and economic powerhouse – the fastest growing city in the country, and recently overtaking London on GDP per head.
‘Our success drives Scotland’s success and a modern, reliable public transport infrastructure is fundamental to sustaining that growth.’
Image: Openverse
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