A HIGH Court judge this afternoon urged the warring factions in the Wembley dispute to try and solve their differencies through mediation.

Multiplex, which blames its former sub-contractor Cleveland Bridge at least in part for the delays which have bedevilled development of the new 90,000-seat national stadium, is seeking up to £45m from Cleveland.

Cleveland, the steel contractor which built the stadium's iconic steel arch but walked off the site in August 2004 citing breach of contract, is counter-claiming £22.6m.

The judge, in the Technology and Construction Court in London, is ruling on a complex dispute in which each side accuses the other of repudiatory breach of contract - a breach so fundamental that the aggrieved party may treat the contract as terminated and sue for damages.

Launching into a day-long marathon judgment on the bitter legal row between Darlington-based Cleveland Bridge and main contractor Multiplex, Mr Justice Jackson said: "Having visited the site, I have no doubt it will be a world-class sports stadium."

Although the judge found in favour of Cleveland in some respects, Multiplex won on the most important issue of breach of contract.

In his complex series of findings, the judge held that Multiplex was not in repudiatory breach of contract and that Cleveland was in breach when it announced in August 2004 that it would carry out no further work.

The case was adjourned until tomorrow when the judge will hear any application by Cleveland for leave to appeal.

Multiplexs lawyers indicated today that they would be seeking an interim costs order - part payment of their legal costs regardless of how the dispute now proceeds - on the basis that we have basically won on the issues.

Delays in completion of the prestigious Wembley complex have resulted in major sporting events being moved to other venues, including Twickenham and Cardiffs Millennium Stadium.

After ruling on 10 preliminary legal issues designed to break the deadlock, the judge said neither party had won outright victory.

He urged the two sides to try to reach an overall financial settlement in the light of his rulings by negotiation or mediation - or through the court if necessary.