THE event organisers behind Dreamspace, which flew into the air claiming the lives of two people, face a crushing legal bill after being refused permission to appeal against an earlier court finding.

Earlier this month, High Court judge, Mr Justice Foskett ruled that Chester-le-Street District Council and Brouhaha International Ltd were each guilty of serious failings that led to the disaster in July 2006.

He ordered that Brouhaha should pay 55 per cent of the millions of pounds in damages to the injured and bereaved, while the council, which has since been abolished and its liabilities taken over by Durham County Council, should pay 45 per cent.

Yesterday, after hearing the council had "tried very hard" to settle the dispute before it even came to court - offering to accept 50 per cent liability - the judge ordered Brouhaha to pay the action's enormous legal costs.

The company, or its insurers, must pay £100,000 straight away, but that is likely to be only a fraction of the final bill, which has yet to be assessed.

Also refusing Brouhaha permission to appeal against his earlier ruling, the judge said the company had "failed to take reasonable care of its own employees" by not ensuring that an adequate risk assessment was carried out.

The judge concluded: "I do not consider that the proposed grounds for appeal have a realistic prospect of success and, accordingly, I refuse permission to appeal".

Mother-of-two Claire Furmedge, 38, of Chester-le-Street, and grandmother Elizabeth Collings, 68, of Dalton-le-Dale, near Seaham, east Durham, died when they fell from the giant inflatible artwork at Riverside Park, Chester-le-Street, when it became airborne in high winds.

In his his earlier ruling, the judge said both the council and Brouhaha were at "serious fault" in failing to recognise the inadequacy of the risk assessment carried out by the creator of Dreamspace V, Maurice Agis, who has since died.

Mr Agis was cleared of manslaughter after a month-long trial, but was convicted of a breach of public safety and fined £2,500. Chester-le-Street council and Brouhaha, run by Mr Agis' son, Giles, were fined for health and safety breaches.

Colette Longbottom, head of the legal department at Durham County Council, said last night: "We note the recent judgement which we are pleased to receive and which we believe is entirely justified in view of the previous judgement on the division of liability."

No-one was available for comment at Brouhaha.