A councillor has said Haringey Council should not "capitulate" to insurance companies after it found itself in a high court battle over the felling of a tree.
The 123-year-old plane tree in Oakfield Road stands directly in front of two houses suffering from subsidence issues.
The homeowners' insurers - Aviva and Allianz - told the council the tree is responsible for the subsidence, and having accepted liability for the tree last year, Haringey Council claimed it will be liable for costs.
The council claims these are now £1m, up from £400,000 in December, but it has provided no evidence.
But campaigners insist the tree is not to blame and the houses need underpinning.
In December Haringey Council went to Clerkenwell Crown Court seeking an injunction against Haringey Tree Protectors and 'Persons Unknown' to ban
them from protesting near the tree so that it could be safely felled, which was adjourned until March 15.
Coincidentally the same day as the crown court hearing to determine the case, one of the homeowners, Andrew Brenner, issued an injuction against the council saying it should not cut down the tree.
A pre-Judicial Review hearing is set for March 29 in the High Court while the crown court hearing over the felling of the tree has been adjourned until its outcome.
In response to it failing to stop Mr Brenner taking out an injuction, a Haringey spokesperson said: "It is wrong that councils are having to make the choice between saving a tree and paying huge sums of taxpayers’ money or felling a tree, so the insurers do not have to pay for tree damage cover."
But Labour councillor Eldridge Culderwell said the Labour-run council must not "capitulate" to big insurance companies.
"When insurance companies come putting pressure on the council it should say 'ok, bring it on' and address it through central government," he said. "If they continue to capitulate on this it will be a carte blanche to insurance companies to continue with their murderous axe.
"We must look to the future because before long other houses will say there are subsidence issues and it will be a natural thing to say 'cut this tree and cut that one'.
"We've got to look at the bigger picture. We need to look after ourselves
and the next generation. This is a serious issue."
Former Highgate councillor Clive Carter said Haringey Council has "concealed information from the public" by redacting reports about the tree and "had not been, and continues not to be, transparent".
He added: "Council leader Peray Ahmet's great claim on becoming leader was co-production with the community but it looks like co-production with insurance companies."
The council has been approached for comment.
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