Tees Esk & Wear Valleys NHS Foundation Trust v Three Valleys Healthcare Ltd & Anor

Tees Esk & Wear Valleys NHS Foundation Trust v Three Valleys Healthcare Ltd & Anor

The Paragraph 3.2.2 Notice was valid as it provided sufficient details of amounts owed and other liabilities or obligations as required by the FDA. The FDA distinguishes between amounts owed (which must be quantified) and other liabilities or obligations (which need not be quantified). The Trust was not required to provide evidence of proper enquiry for the notice to be valid. Any inadequacy in enquiry would affect entitlement to terminate, not the validity of the notice.

Parties
Claimant: Tees Esk & Wear Valleys NHS Foundation Trust; First Defendant: Three Valleys Healthcare Limited; Second Defendant: Bank of Scotland PLC
Jurisdiction
England and Wales
Judgment Date
29 June 2018
Procedural Posture
Civil / Judgment
Outcome
declarations granted in favour of the claimant
Legal Topics
Termination of Contract, Public Private Partnership (pfi), Notice Requirements, Step in Rights, Declaratory Relief
Contract Law Construction Law Termination of Contract Public Private Partnership (pfi) Notice Requirements Step in Rights Declaratory Relief

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Parties

Tees Esk & Wear Valleys NHS Foundation Trust

Claimant

Three Valleys Healthcare Limited

First Defendant

Bank of Scotland PLC

Second Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the Paragraph 3.2.2 Notice served by the Trust under the Funders Direct Agreement (FDA) was valid and sufficient to entitle the Trust to terminate the Project Agreement.
  2. 2 Whether the Trust was required to quantify all claims and provide evidence of proper enquiry in the Paragraph 3.2.2 Notice.

Ratio Decidendi

The Paragraph 3.2.2 Notice was valid as it provided sufficient details of amounts owed and other liabilities or obligations as required by the FDA. The FDA distinguishes between amounts owed (which must be quantified) and other liabilities or obligations (which need not be quantified). The Trust was not required to provide evidence of proper enquiry for the notice to be valid. Any inadequacy in enquiry would affect entitlement to terminate, not the validity of the notice.

Court Disposition

declarations granted in favour of the claimant

Orders

  • Declaration that the 1 June 2017 Termination Notice is valid for the purposes of paragraph 3.2.1 of the FDA.
  • Declaration that the Paragraph 3.2.2 Notice is valid for the purposes of paragraph 3.2.2 of the FDA.