SCHOOL AND NURSERY MILK ALLIANCE LTD FOR JUDICIAL REVIEW [2022] ScotCS CSOH_11 (28 January 2022)

SCHOOL AND NURSERY MILK ALLIANCE LTD FOR JUDICIAL REVIEW [2022] ScotCS CSOH_11 (28 January 2022)

The consultation process regarding the funding formula and LSRs was procedurally unfair. The petitioner had a legitimate expectation of meaningful consultation based on clear assurances. The Scottish Ministers failed to disclose critical information about the LSR methodology at a formative stage, depriving stakeholders of an opportunity to make informed representations. The methodology for setting LSRs was irrational, as it did not reflect actual costs and failed to make proper inquiry into relevant market data. The regulations and guidance, insofar as they relate to LSRs, are unlawful and must be reduced.

Citation
[2022] ScotCS CSOH_11
Parties
Petitioner: School and Nursery Milk Alliance Limited; Respondent: Scottish Ministers
Jurisdiction
Scotland
Judgment Date
28 January 2022
Procedural Posture
Judicial Review / Final Judgment
Outcome
Petition sustained; regulations and guidance reduced insofar as they relate to LSRs.
Legal Topics
Consultation Requirements, Legitimate Expectation, Irrationality, Statutory Interpretation, Regulatory Funding Schemes

Case Brief

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Parties

School and Nursery Milk Alliance Limited

Petitioner

Scottish Ministers

Respondent

Procedural Posture

Judicial Review / Final Judgment

  1. 1 Whether the consultation process regarding the Milk and Healthy Snack Scheme (Scotland) Regulations 2021 was fair and adequate
  2. 2 Whether the petitioner had a legitimate expectation of consultation
  3. 3 Whether the methodology for setting Local Serving Rates (LSRs) was irrational or failed to take relevant considerations into account

Ratio Decidendi

The consultation process regarding the funding formula and LSRs was procedurally unfair. The petitioner had a legitimate expectation of meaningful consultation based on clear assurances. The Scottish Ministers failed to disclose critical information about the LSR methodology at a formative stage, depriving stakeholders of an opportunity to make informed representations. The methodology for setting LSRs was irrational, as it did not reflect actual costs and failed to make proper inquiry into relevant market data. The regulations and guidance, insofar as they relate to LSRs, are unlawful and must be reduced.

Court Disposition

Petition sustained; regulations and guidance reduced insofar as they relate to LSRs.

Orders

  • Reduction of statutory guidance and rates table relating to LSRs
  • Reduction of respondent's decision to determine funding formula by LSRs