Council acted unlawfully, say judge in landmark case.
Brent council has been dealt a blow in the second part of its battle against Risk Management Partners (RMP) to channel insurance through the London Authorities Mutual Limited (LAML).
In the second Judgment in a landmark case, the High Court found that Brent LBC acted unlawfully in side-stepping EU-regulated procurement procedures and awarding its insurance services direct to the LAML, a mutual insurer for London borough councils.
The effects of this Judgment will be felt throughout the local government arena as it confirms that all councils must adhere strictly to the tender framework.
RMP, a company providing insurance services to local authorities, pursued the test case against Brent after Brent abandoned the EU-regulated public procurement process and awarded the contract for its insurance services to LAML, outside the tender framework.
Jolyon Patten, partner at national law firm Halliwells LLP, who acted for RMP, comments: “The Judgment is a tremendous success for RMP and will be a relief to all those providing insurance services to the local government sector.
"LAML has never explained how its operating as a monopoly could benefit authorities. These Regulations are there precisely to ensure transparency, fairness and competition in public procurement, and this decision underlines the fundamental importance of those principles to the local government sector.”
