The Crosthwaites have lived in their west London cottage oppostite the Bridge for 50 years and the family - comprising Lucinda and Nicolas, plus children Louis and Rose - took out an injunction in May when they discovered the new 60,000-capacity stadium will cast a permanent shadow over parts of their home.
Despite the lawsuit, the local municipalities of Fulham and the London Borough of Hammersmith are looking to intervene with the families to allow the plans to move forward, using local planning laws to override the injunction.
Chelsea reportedly offered over £100,000 in the way of compensation and legal advice to the Crosthwaites, but the family turned down the club's offer, stating that "sunlight and daylight will be seriously affected" and pointing to Kensington and Chelsea's summation that the redevelopment would have "an unacceptable and harmful impact" on the local area.
They would then lease the land back to Chelsea and railway operators Network Rail, meaning the property owners would be entitled to compensation but would not be able to prevent the redevelopment.
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Though settlements have been reached with the rest of the homeowners on the street, where properties have recently been sold for £1.18m, the Crosthwaites are located the closest to the stadium site.
But recent months have brought considerable added costs and complications to the project, which will require Chelsea to play in a temporary home while Stamford Bridge and the surrounding buildings are demolished and the new stadium is constructed.
Chelsea held a public consultation of 13,000 local residents and say the plans earned 97.5 per cent support.
The current stadium is the seventh biggest in the Premier League.
Hammersmith and Fulham city councillors are set to meet on Monday to make a decision on what will happen next.
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