Covanta Energy Ltd v Merseyside Waste Disposal Authority [2013] EWHC 2922 (TCC) (26 September 2013)

Covanta Energy Ltd v Merseyside Waste Disposal Authority [2013] EWHC 2922 (TCC) (26 September 2013)

The amended Public Contracts Regulations 2006, including automatic suspension, do not apply to procurements commenced before 20 December 2009 due to clear transitional provisions. However, on the facts, damages would not be an adequate remedy for Covanta due to the complexity and speculative nature of loss assessment, particularly regarding the competitive dialogue procedure. The balance of convenience, considering public interest, inadequacy of damages, and modest further delay, favours granting an interim injunction restraining MWDA from entering into the contract with SITA until trial.

Citation
[2013] EWHC 2922 (TCC)
Parties
Claimant: Covanta Energy Ltd; Defendant: Merseyside Waste Disposal Authority
Jurisdiction
England and Wales
Judgment Date
26 September 2013
Procedural Posture
Judicial Review / Procurement Challenge / Interim Injunction Application
Outcome
Interim injunction granted
Legal Topics
Interim Injunctions, Public Contracts Regulations 2006, EU Remedies Directive, Competitive Dialogue Procedure, Adequacy of Damages, Balance of Convenience
Public Procurement Administrative Law Contract Law Interim Injunctions Public Contracts Regulations 2006 EU Remedies Directive Competitive Dialogue Procedure Adequacy of Damages +1 more

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Parties

Covanta Energy Ltd

Claimant

Merseyside Waste Disposal Authority

Defendant

Procedural Posture

Judicial Review / Procurement Challenge / Interim Injunction Application

Legal Issues

  1. 1 Whether the amended Public Contracts Regulations 2006 (including automatic suspension provisions) apply to a procurement commenced before 20 December 2009
  2. 2 Whether an interim injunction should be granted to restrain MWDA from entering into the contract with SITA pending trial
  3. 3 Adequacy of damages as a remedy for Covanta and MWDA

Ratio Decidendi

The amended Public Contracts Regulations 2006, including automatic suspension, do not apply to procurements commenced before 20 December 2009 due to clear transitional provisions. However, on the facts, damages would not be an adequate remedy for Covanta due to the complexity and speculative nature of loss assessment, particularly regarding the competitive dialogue procedure. The balance of convenience, considering public interest, inadequacy of damages, and modest further delay, favours granting an interim injunction restraining MWDA from entering into the contract with SITA until trial.

Court Disposition

Interim injunction granted

Orders

  • MWDA is restrained from entering into the Resource Recovery Contract with SITA until the conclusion of the trial or further order.