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
Legal Issues
- 1 Whether the consultation process regarding the Milk and Healthy Snack Scheme (Scotland) Regulations 2021 was fair and adequate
- 2 Whether the petitioner had a legitimate expectation of consultation
- 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
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