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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

Sidley—James Inness

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Partner joins capital markets team in London office

Haynes Boone—William Cecil

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Firm announces appointment of partner as UK general counsel

Devonshires—Nicholas Barrows

Devonshires—Nicholas Barrows

Firm appoints first chief marketing officer to drive growth strategy

NEWS
A seemingly dry procedural update may prove potent. In his latest 'Civil way' column for NLJ this week, Stephen Gold explains that new CPR 31.12A—part of the 193rd update—fills a ‘lacuna’ exposed in McLaren Indy v Alpa Racing
The long-running Mazur saga edged towards its finale as the Court of Appeal heard arguments on whether non-solicitors can ‘conduct litigation’. Writing in NLJ this week, Professor Dominic Regan of City Law School reports from a packed courtroom where 16 wigs watched Nick Bacon KC argue that Mr Justice Sheldon had failed to distinguish between ‘tasks and responsibilities’

The Court of Appeal has slammed the brakes on claimants trying to swap defendants after limitation has expired. In Adcamp LLP v Office Properties and BDB Pitmans v Lee [2026] EWCA Civ 50, it overturned High Court rulings that had allowed substitutions under s 35(6)(b) of the Limitation Act 1980, reports Sarah Crowther of DAC Beachcroft in this week's NLJ

Cheating in driving tests is surging—and courts are responding firmly. Writing in NLJ this week, Neil Parpworth of De Montfort Law School charts a rise in impersonation and tech-assisted fraud, with 2,844 attempts recorded in a year
As AI-generated ‘deepfake’ images proliferate, the law may already have the tools to respond. In NLJ this week, Jon Belcher of Excello Law argues that such images amount to personal data processing under UK GDPR
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