A PROPERTY developer who says he wants to build affordable homes on Portland has lost a legal action against a councillor who he claimed labelled his scheme a 'con'.

Foundation Homes boss David Stevens lodged a claim for slander against Weymouth and Portland borough councillor Margaret Leicester for remarks she was alleged to have made after a meeting of the council's planning and traffic committee last year.

Mr Stevens, who is still pressing his case to build homes for first-time buyers on a plot near a quarry and former landfill site at the Grove, appealed when a judge ruled that Coun Leicester's comments were protected.

But Lord Justice Longmore threw out the case at the Court of Appeal in London yesterday.

It was in April 2006 that the borough council's planning and traffic committee turned down Mr Stevens's controversial homes plan, on the basis that it was outside the development boundary. Mr Stevens attracted some interest from prospective buyers but his scheme faced a barrage of criticism from local residents.

Lord Justice Longmore said that after the committee meeting one of the buyers, Steven Brewer, approached Coun Leicester and asked why the scheme had been given the thumbs down.

Coun Leicester, who has served on the borough council for almost 20 years, was alleged to have replied: "I am only trying to protect you. It is a con."

The judge noted that Coun Leicester had since admitted saying the first part of that sentence but denied the second.

Her defence to Mr Stevens's slander claim was that she was protected by 'qualified privilege'.

Outlining her defence, Lord Justice Longmore said: "As a councillor and committee member, she had a duty to communicate her concerns about Mr Stevens' scheme to Mr Brewer."

In a counter-application, Mr Stevens asked the court for permission to allege that Coun Leicester had acted with malice.

In March this year, Mr Justice Tugendhat refused him permission and granted summary judgement in Ms Leicester's favour, agreeing that she was protected by qualified privilege.

Mr Stevens challenged that ruling in the Court of Appeal arguing that, to claim qualified privilege, a person could not rely on facts that they did not know at the time.

Mr Stevens argued that Coun Leicester did not know to whom she was responding or which planning application Mr Brewer was asking about, as four had been discussed that day.

However Lord Justice Longmore agreed with Mr Justice Tugendhat's conclusion that Mr Stevens' stance was 'unreal'.

Mr Stevens, 60, of Lanehouse Rocks Road, Weymouth, resubmitted his homes plan to the borough council but it was again rejected last September.

He said he was seeking judicial review of the council's decision. That case is expected to be heard in the High Court in November.

Coun Leicester did not want to comment.