Supportways Community Services Ltd., R (on the application of) v Hampshire County Council

Supportways Community Services Ltd., R (on the application of) v Hampshire County Council

Hampshire County Council failed to conduct the service review in accordance with its own local arrangements, as required by contract and statutory guidance, by not considering whether the costs were reasonable in the circumstances after the upper quartile was exceeded. However, the contract's termination was triggered by the occurrence of a review in good faith, not by the review's quality. The appropriate remedy is to require Hampshire to reconduct the review in accordance with its arrangements, with the outcome to take effect retrospectively from 16 July 2005. Costs are apportioned 60% to the claimants and 40% to the defendants, reflecting partial success on both sides.

Parties
Claimant: Supportways Community Services Limited; Defendant: Hampshire County Council
Jurisdiction
England and Wales
Judgment Date
08 December 2005
Procedural Posture
Judicial Review and Contractual Claim / Final Judgment After Trial
Outcome
Claim allowed in part; review to be reconducted; costs apportioned
Legal Topics
Public Procurement, Statutory Guidance Compliance, Service Contract Review, Remedies for Flawed Administrative Decisions, Costs Apportionment
Administrative Law Contract Law Local Government Law Public Procurement Statutory Guidance Compliance Service Contract Review Remedies for Flawed Administrative Decisions Costs Apportionment

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Parties

Supportways Community Services Limited

Claimant

Hampshire County Council

Defendant

Procedural Posture

Judicial Review and Contractual Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether Hampshire County Council conducted the service review in accordance with its own local arrangements and statutory guidance
  2. 2 Whether the flawed review affected the contractual rights and obligations of the parties
  3. 3 Whether the claimants are entitled to continuation of the contract or other remedies

Ratio Decidendi

Hampshire County Council failed to conduct the service review in accordance with its own local arrangements, as required by contract and statutory guidance, by not considering whether the costs were reasonable in the circumstances after the upper quartile was exceeded. However, the contract's termination was triggered by the occurrence of a review in good faith, not by the review's quality. The appropriate remedy is to require Hampshire to reconduct the review in accordance with its arrangements, with the outcome to take effect retrospectively from 16 July 2005. Costs are apportioned 60% to the claimants and 40% to the defendants, reflecting partial success on both sides.

Court Disposition

Claim allowed in part; review to be reconducted; costs apportioned

Orders

  • Hampshire County Council to reconduct the service review in accordance with its local arrangements, with effect from 16 July 2005.
  • The money in court to be paid to the claimants' solicitors with interest.