Gloucester City Council claims BT is sabotaging plans for a£100m regeneration scheme by refusing to hand over a vital plot of land.
The company owns a staff car park whose site is essential to the council's plan to build a cinema, shops and leisure centre on a brownfield site.
The deal, with developers Arrowcroft, requires the use of the land owned by BT, but the firm has gone to the High Court to keep possession of the car park.
Leader Kevin Stephens (Lab) said the council had spent£650,000 on the deal which has been under negotiation for 10 years.
A spokeswoman for BT said: 'This site is not just a car park. It is the telephone hub of the area and the council has offered no practical alternative.'
Capita Secures£500m BBC Deal
Capita has won a contract worth£500m to deliver the BBC's television licensing contract.
The 10-year contract is the biggest yet secured by the firm which recently won contracts with the Criminal Records Bureau and the Department for Education & Skills.
Executive chairman Rod Aldridge said: 'We see extensive opportunities for innovative use of new technologies and new ways of working to enhance the service to the BBC.'
Norfolk Bids On School PFI Deal
Norfolk CC is bidding for more than£160m for a schools private finance initiative project.
Alec Byrne (Con) said: 'We want to put in the highest bid that will be successful and will benefit as many children as possible.'