Risk Management Partners Ltd v The London Borough of Brent

Risk Management Partners Ltd v The London Borough of Brent

Brent breached the Public Contracts Regulations 2006 by awarding insurance contracts to LAML without a tender process, as the requirements of the Teckal exemption were not satisfied; the first condition of decisive control was not met due to the structure and management of LAML.

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 for Breach of Procurement Regulations / Judgment on Liability
Outcome
Claim allowed; Brent liable for breach of the Regulations
Legal Topics
Public Contracts Regulations 2006, Teckal Exemption, Breach of Procurement Procedures, Damages for Breach of Statutory Duty
Public Procurement Administrative Law European Union Law Public Contracts Regulations 2006 Teckal Exemption Breach of Procurement Procedures Damages for Breach of Statutory Duty

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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 for Breach of Procurement Regulations / Judgment on Liability

Legal Issues

  1. 1 Whether Brent breached the Public Contracts Regulations 2006 in awarding insurance contracts to LAML without a tender process
  2. 2 Whether the Teckal exemption applies under English law and to insurance contracts
  3. 3 Whether RMP complied with procedural requirements for bringing a claim

Ratio Decidendi

Brent breached the Public Contracts Regulations 2006 by awarding insurance contracts to LAML without a tender process, as the requirements of the Teckal exemption were not satisfied; the first condition of decisive control was not met due to the structure and management of LAML.

Court Disposition

Claim allowed; Brent liable for breach of the Regulations

Orders

  • RMP is entitled to damages for Brent’s breaches of the Regulations