Smart Telecom Plc trading as Smart Telecom v Radio Teilifis Eireann & Anor [2006] IEHC 176 (26 May 2006)

Smart Telecom Plc trading as Smart Telecom v Radio Teilifis Eireann & Anor [2006] IEHC 176 (26 May 2006)

On the true construction of the R.T.E offer, referential bids were impermissible. The offer required a fixed monetary amount per annum and in total, and the process was designed to elicit each bidder's best fixed offer in a confidential, sealed process. The authorities, especially Harvela, support the conclusion that referential bids are invalid in such circumstances. Smart's referential bid was therefore invalid, and R.T.E was not obliged to award the contract to Smart or to re-tender.

Citation
[2006] IEHC 176
Parties
Plaintiff: Smart Telecom plc trading as Smart Telecom; First Defendant: Radio Teilefís Éireann; Second Defendant: Glanbia plc
Jurisdiction
Ireland
Judgment Date
26 May 2006
Procedural Posture
Commercial / High Court Judgment
Outcome
Action dismissed
Legal Topics
Tendering Process, Referential Bids, Specific Performance, Breach of Contract, Sealed Bidding, Transparency in Procurement
Contract Law Commercial Law Tendering Process Referential Bids Specific Performance Breach of Contract Sealed Bidding Transparency in Procurement

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Parties

Smart Telecom plc trading as Smart Telecom

Plaintiff

Radio Teilefís Éireann

First Defendant

Glanbia plc

Second Defendant

Procedural Posture

Commercial / High Court Judgment

Legal Issues

  1. 1 Was the referential bid submitted by Smart a valid bid in response to the R.T.E offer?
  2. 2 Is R.T.E obliged on foot of Smart’s bid to award the sponsorship contract to Smart?
  3. 3 Is R.T.E obliged to re-tender the contract due to failure to inform Smart that referential bids were not acceptable?

Ratio Decidendi

On the true construction of the R.T.E offer, referential bids were impermissible. The offer required a fixed monetary amount per annum and in total, and the process was designed to elicit each bidder's best fixed offer in a confidential, sealed process. The authorities, especially Harvela, support the conclusion that referential bids are invalid in such circumstances. Smart's referential bid was therefore invalid, and R.T.E was not obliged to award the contract to Smart or to re-tender.

Court Disposition

Action dismissed