Risk Management Partners Ltd v The London Borough of Brent [2008] EWHC 1094 (Admin) (16 May 2008)

Risk Management Partners Ltd v The London Borough of Brent [2008] EWHC 1094 (Admin) (16 May 2008)

The court held that Brent was not exempt from the requirements of the Public Contracts Regulations 2006 in awarding insurance contracts to LAML, as the Teckal exemption did not apply. Brent did not exercise sufficient control over LAML akin to its own departments, and LAML's activities were not sufficiently restricted to its controlling authorities. Therefore, Brent acted in breach of the Regulations.

Citation
[2008] EWHC 1094 (Admin)
Parties
Claimant: Risk Management Partners Limited; First Defendant: The Council of the London Borough of Brent; Second Defendant: The London Authorities Mutual Limited; Third Defendant: The Council of the London Borough of Harrow
Jurisdiction
England and Wales
Judgment Date
16 May 2008
Procedural Posture
Claim for Damages Under Public Contracts Regulations 2006 / Judgment on Liability
Outcome
Claim for liability upheld; Brent found in breach of the Regulations. Quantum of damages not determined in this judgment.
Legal Topics
Public Contracts Regulations 2006, Teckal Exemption, Procurement Procedures, Local Authority Powers, Damages for Breach of Procurement Law
Public Procurement Law Administrative Law European Union Law Public Contracts Regulations 2006 Teckal Exemption Procurement Procedures Local Authority Powers Damages for Breach of Procurement Law

Case Brief

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Parties

Risk Management Partners Limited

Claimant

The Council of the London Borough of Brent

First Defendant

The London Authorities Mutual Limited

Second Defendant

The Council of the London Borough of Harrow

Third Defendant

Procedural Posture

Claim for Damages Under Public Contracts Regulations 2006 / Judgment on Liability

Legal Issues

  1. 1 Whether Brent breached the Public Contracts Regulations 2006 by awarding insurance contracts to LAML without a tender process
  2. 2 Whether the Teckal exemption applies to exempt Brent from the Regulations
  3. 3 Whether RMP complied with procedural requirements for a damages claim under regulation 47

Ratio Decidendi

The court held that Brent was not exempt from the requirements of the Public Contracts Regulations 2006 in awarding insurance contracts to LAML, as the Teckal exemption did not apply. Brent did not exercise sufficient control over LAML akin to its own departments, and LAML's activities were not sufficiently restricted to its controlling authorities. Therefore, Brent acted in breach of the Regulations.

Court Disposition

Claim for liability upheld; Brent found in breach of the Regulations. Quantum of damages not determined in this judgment.

Orders

  • Declaration that Brent acted in breach of the Public Contracts Regulations 2006 by awarding insurance contracts to LAML without a tender process.