Faraday Development Ltd, R (on the application of) v West Berkshire Council & Anor

Faraday Development Ltd, R (on the application of) v West Berkshire Council & Anor

West Berkshire Council complied with its statutory duty under section 123 of the Local Government Act 1972, properly considered relevant factors, and lawfully structured the Development Agreement so as not to impose enforceable obligations triggering procurement legislation. The Development Agreement is not a public works contract within the meaning of procurement law, and the Council's approach was not irrational.

Parties
Claimant: Faraday Development Limited; Defendant: West Berkshire Council; Interested Party: St Modwen Developments Limited
Jurisdiction
England and Wales
Judgment Date
26 August 2016
Procedural Posture
Judicial Review and Statutory Claim Under Public Contracts Regulations / Final Judgment
Outcome
Claims for judicial review and statutory claim under Part 6 of the Public Contracts Regulations dismissed.
Legal Topics
Best Consideration Duty, Public Works Contracts, Procurement Regime, Land Disposal, Rationality in Decision Making
Administrative Law Public Procurement Local Government Law Best Consideration Duty Public Works Contracts Procurement Regime Land Disposal Rationality in Decision Making

Case Brief

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Parties

Faraday Development Limited

Claimant

West Berkshire Council

Defendant

St Modwen Developments Limited

Interested Party

Procedural Posture

Judicial Review and Statutory Claim Under Public Contracts Regulations / Final Judgment

Legal Issues

  1. 1 Whether West Berkshire Council complied with its duty under section 123 of the Local Government Act 1972 to obtain best consideration reasonably obtainable for land disposal
  2. 2 Whether the Development Agreement constituted a public works contract subject to procurement legislation
  3. 3 Whether the Council's decision to structure the agreement to avoid procurement obligations was irrational

Ratio Decidendi

West Berkshire Council complied with its statutory duty under section 123 of the Local Government Act 1972, properly considered relevant factors, and lawfully structured the Development Agreement so as not to impose enforceable obligations triggering procurement legislation. The Development Agreement is not a public works contract within the meaning of procurement law, and the Council's approach was not irrational.

Court Disposition

Claims for judicial review and statutory claim under Part 6 of the Public Contracts Regulations dismissed.

Orders

  • Defendant awarded costs on standard basis.
  • Permission to appeal refused.