Mavalon Care Ltd & Ors, R (on the application of) v Pembrokeshire County Council [2011] EWHC 3371 (Admin) (16 December 2011)

Mavalon Care Ltd & Ors, R (on the application of) v Pembrokeshire County Council [2011] EWHC 3371 (Admin) (16 December 2011)

The Council's decision to reduce the rate of return on capital to 6% was unlawful because it was based on errors of law and fact, including misapplying the significance of not incentivising new building and the fall in market value, and failing to provide a rational, transparent justification for departing from the agreed toolkit and government guidance. The process did not comply with required standards of consultation, transparency, and consideration of relevant factors.

Citation
[2011] EWHC 3371 (Admin)
Parties
Claimant: Mavalon Care Ltd; Claimant: Forest Care Homes Ltd; Claimant: Woodhill Care Ltd; Claimant: Rickeston Care Home Ltd; Claimant: Van Dyk Healthcare (Dragon) Ltd; Claimant: Torestin Care Home Ltd; Claimant: Canterbury House Residential Home Ltd; Defendant: Pembrokeshire County Council
Jurisdiction
England and Wales
Judgment Date
16 December 2011
Procedural Posture
Judicial Review / Final Judgment
Outcome
Claim allowed; Council's decision quashed and remitted for lawful reconsideration.
Legal Topics
Local Authority Fee Setting, Statutory Duties Under National Assistance Act 1948, Judicial Review of Public Body Decisions, Commissioning Guidance Compliance, Return on Capital in Care Sector
Administrative Law Public Law Social Care Law Local Authority Fee Setting Statutory Duties Under National Assistance Act 1948 Judicial Review of Public Body Decisions Commissioning Guidance Compliance Return on Capital in Care Sector

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Parties

Mavalon Care Ltd

Claimant

Forest Care Homes Ltd

Claimant

Woodhill Care Ltd

Claimant

Rickeston Care Home Ltd

Claimant

Van Dyk Healthcare (Dragon) Ltd

Claimant

Torestin Care Home Ltd

Claimant

Canterbury House Residential Home Ltd

Claimant

Pembrokeshire County Council

Defendant

Procedural Posture

Judicial Review / Final Judgment

Legal Issues

  1. 1 Whether Pembrokeshire County Council lawfully set care home fees for 2010-2011
  2. 2 Whether the Council's reduction of the rate of return on capital from 12% to 6% was rational and justified
  3. 3 Whether the Council complied with statutory and guidance requirements in its decision-making process

Ratio Decidendi

The Council's decision to reduce the rate of return on capital to 6% was unlawful because it was based on errors of law and fact, including misapplying the significance of not incentivising new building and the fall in market value, and failing to provide a rational, transparent justification for departing from the agreed toolkit and government guidance. The process did not comply with required standards of consultation, transparency, and consideration of relevant factors.

Court Disposition

Claim allowed; Council's decision quashed and remitted for lawful reconsideration.

Orders

  • The Council's decision to set the care home fee at £464 per resident per week for 2010-2011 is quashed.
  • The matter is remitted to Pembrokeshire County Council for lawful redetermination in accordance with statutory duties and guidance.