The Corporation of Hamilton has applied to overturn the legal judgment regarding its $18 million debt over the failed Par-la-Ville hotel project.

Mayor Charles Gosling said that the Corporation’s prior administration did not have the remit to enter into the transaction with Mexico Infrastructure Finance LLC, according to legal counsel.

“Our advice from senior counsel even goes so far as to rule out any possible part settlement of this matter, even were such an offer to be presented,” Mr Gosling added.

“An application has accordingly been submitted to the courts asking that the consent order of the Chief Justice made in May 2015 ordering the payment of the guarantee be overturned.

“This matter is now before the courts, and we do not feel it appropriate to make any further comment at this time.”

Mr Gosling said that, while he “did not relish” this course of action, he felt obligated to ratepayers and how their contributions are spent.

In January, following a missed payment deadline, MIF’s legal team told the Corporation that if it failed to settle the debt, it could sell the Hamilton Fire Station, the Chamber of Commerce building and the Custom House.