Indigo Services (UK) Ltd v The Colchester Institute Corporation [2010] EWHC 3237 (QB) (01 December 2010)

Indigo Services (UK) Ltd v The Colchester Institute Corporation [2010] EWHC 3237 (QB) (01 December 2010)

The balance of irremediable prejudice strongly favours lifting the standstill, as continuing it would cause significant harm to the College and the public, while Indigo's prejudice can be addressed by damages. The defects in the tender process do not plainly establish causative effect, and even if proven, the chance lost is unlikely to exceed the minimum threshold. Extension of the existing contract is not legally permissible under procurement regulations.

Citation
[2010] EWHC 3237
Parties
Claimant/respondent: Indigo Services (UK) Limited; Defendant/applicant: The Colchester Institute Corporation
Jurisdiction
England and Wales
Judgment Date
01 December 2010
Procedural Posture
Interim Application Under Public Contracts Regulations 2006 (as Amended) / Application to Lift Automatic Prohibition on Contract Award (standstill)
Outcome
Application granted; automatic prohibition lifted under regulation 47H(1)(a).
Legal Topics
Interim Relief, Standstill Period, Tender Evaluation, Causation in Procurement Challenges, Adequacy of Damages, Balance of Convenience
Public Procurement Contract Law Administrative Law Interim Relief Standstill Period Tender Evaluation Causation in Procurement Challenges Adequacy of Damages +1 more

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Parties

Indigo Services (UK) Limited

Claimant/respondent

The Colchester Institute Corporation

Defendant/applicant

Procedural Posture

Interim Application Under Public Contracts Regulations 2006 (as Amended) / Application to Lift Automatic Prohibition on Contract Award (standstill)

Legal Issues

  1. 1 Whether the automatic prohibition on contract award should be lifted under regulation 47H(1)(a)
  2. 2 Whether the claimant suffered loss of a non-fanciful chance due to defects in the tender process
  3. 3 Adequacy of damages as a remedy

Ratio Decidendi

The balance of irremediable prejudice strongly favours lifting the standstill, as continuing it would cause significant harm to the College and the public, while Indigo's prejudice can be addressed by damages. The defects in the tender process do not plainly establish causative effect, and even if proven, the chance lost is unlikely to exceed the minimum threshold. Extension of the existing contract is not legally permissible under procurement regulations.

Court Disposition

Application granted; automatic prohibition lifted under regulation 47H(1)(a).

Orders

  • The standstill is terminated; the College may immediately sign the contract with Emprise Service plc.