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 overwhelmingly favours lifting the automatic suspension, as maintaining it would risk closure of the College's facilities and disrupt public education, whereas any prejudice to Indigo can be compensated by damages. The defects in the tender process do not plainly establish causative effect, and even if a serious issue exists, the likelihood of substantial loss is low. There is no legal basis for extending the existing contract without a new procurement process.

Citation
[2010] EWHC 3237 (QB)
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 in Public Procurement Dispute / Application by Contracting Authority to Lift Automatic Suspension Under Regulation 47 G of the Public Contracts Regulations 2006
Outcome
Application granted; automatic suspension lifted.
Legal Topics
Interim Relief, Automatic Suspension, Public Contracts Regulations 2006, Tender Process, Damages as Remedy, Balance of Convenience
Public Procurement Contract Law Interim Relief Automatic Suspension Public Contracts Regulations 2006 Tender Process Damages as Remedy Balance of Convenience

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Parties

Indigo Services (UK) Limited

Claimant/respondent

The Colchester Institute Corporation

Defendant/applicant

Procedural Posture

Interim Application in Public Procurement Dispute / Application by Contracting Authority to Lift Automatic Suspension Under Regulation 47 G of the Public Contracts Regulations 2006

Legal Issues

  1. 1 Whether the automatic suspension on contract award should be lifted under regulation 47H(1)(a) of the Public Contracts Regulations 2006
  2. 2 Whether the claimant has a serious issue to be tried regarding breach of procurement rules and loss of a non-fanciful chance
  3. 3 Whether damages would be an adequate remedy for the claimant

Ratio Decidendi

The balance of irremediable prejudice overwhelmingly favours lifting the automatic suspension, as maintaining it would risk closure of the College's facilities and disrupt public education, whereas any prejudice to Indigo can be compensated by damages. The defects in the tender process do not plainly establish causative effect, and even if a serious issue exists, the likelihood of substantial loss is low. There is no legal basis for extending the existing contract without a new procurement process.

Court Disposition

Application granted; automatic suspension lifted.

Orders

  • The standstill under regulation 47G is terminated; the College may enter into the contract with Emprise.