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18 June 2009
Issue: 7374 / Categories: Legal News , Local government , Commercial
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Procurement challenge

Commercial

A local authority is liable for damages for abandoning a procurement process in favour of an associated company, the Court of Appeal has held, in a case which is likely to encourage more legal challenges from bidders.
In Risk Management Partners Ltd v Council of the London Borough of Brent & Ors, Brent had started a procurement process, in which Risk Management (RMP) had made the most financially advantageous bid. However, Brent abandoned the process and awarded the contract to London Authorities Mutual Ltd, of which Brent was a participating member.

RMP sued on the basis Brent had infringed the Public Contracts Regulations 2006. Brent accepted this but argued in-house awards were exempt from the regulations, on the basis of Teckal SrL v Comune di Viano [1999].
The Court of Appeal interpreted the in-house exemption strictly, ruling in favour of RMP.

Catherine Wolfenden, senior associate, Osborne Clarke, says: “This is a rare example of the court holding a public body liable for damages under the current procurement rules. 

“However, the UK is due to implement the new Remedies Directive by the end of this year. This will significantly strengthen the powers of the courts where a public authority breaches the Regulations, and is likely to make this sort of decision much more common.  

“The recovery of damages by RMP in this case should encourage disgruntled bidders to bring complaints before the courts where the procurement rules have been infringed.”

Issue: 7374 / Categories: Legal News , Local government , Commercial
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MOVERS & SHAKERS

Arc Pensions Law—Matthew Swynnerton

Arc Pensions Law—Matthew Swynnerton

Chair of the Association of Pension Lawyers joins as partner

Ampa Group—Kamal Chauhan

Ampa Group—Kamal Chauhan

Group names Shakespeare Martineau partner head of Sheffield office

Blake Morgan—four promotions

Blake Morgan—four promotions

Four legal directors promoted to partner across UK offices

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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