Summary
On an application to lift the automatic suspension in a public procurement challenge, the court applies the ordinary American Cyanamid approach. The threshold for a serious issue to be tried is low, particularly where the relevant evaluation documents have not been disclosed. A contracting authority should not withhold material disclosure and then rely on that material at the interlocutory hearing. The court must assess the adequacy of damages, the importance of the remedy of review, and the competing advantages and disadvantages of maintaining or lifting the suspension. The public interest in lawful procurement may outweigh a short delay, especially where lifting the suspension would effectively extinguish the claimant’s claim and the alleged prejudice to service users is unproved.
Factual background
Bristol Missing Link Ltd, the incumbent provider of domestic violence and abuse support services, challenged Bristol City Council’s proposed award of a replacement contract to Refuge under the Public Contracts Regulations 2006.
The Council applied under regulation 47H to lift the automatic suspension imposed by regulation 47G(1). BMLL alleged unlawful downward moderation of its evaluation scores and errors in the individual scoring of its tender. The Council contended that the claim raised no serious issue to be tried and that the balance of convenience favoured allowing the new contract to proceed.
Held
- The application to lift the automatic suspension was refused. The suspension was to remain in force until after an expedited trial.
- The applicable approach was the ordinary interim-injunction test under American Cyanamid Co v Ethicon Ltd (No 1). EU principles concerning fairness, transparency and the remedy of review remained relevant to the balance of convenience, but did not create a different legal test.
- The serious-issue threshold is low. Where a procurement challenge raises arguable complaints about individual scores or moderation, and the relevant documents have not been disclosed, it will ordinarily be difficult to conclude that there is no serious issue to be tried. BMLL’s complaints about the moderation meeting and individual scores met that threshold.
- The Council’s disclosure approach was potentially unfair. It should not withhold documents relating to the successful tender and then rely on new evidence about that tender to show that the claim was hopeless or that lifting the suspension would cause prejudice. Controversial material which the claimant cannot fairly answer should not ordinarily be deployed on a regulation 47H application.
- The balance of convenience favoured maintaining the suspension. Damages were inadequate for BMLL because it was a non-profit organisation, had made no allowance for profit, and faced potentially catastrophic effects on its operations, services and reputation. Damages were adequate for the Council if the claim ultimately failed.
- The importance of the remedy of review supported maintaining the suspension. An expedited trial could occur within a reasonably short period, producing only an approximately six-month delay. The Council had not demonstrated significant prejudice to service users, since BMLL’s existing services were broadly equivalent to, or better than, those required by the proposed contract.
The court’s approach to earlier authorities
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Key cases cited
24 authorities cited.
- National Commercial Bank Jamaica Ltd v Olint Corpn Ltd (Practice Note) [2009] UKPC 16
- American Cyanamid Co v Ethicon Ltd [1975] AC 396
- DWF Llp v Secretary of State for Business Innovation And Skills [2014] EWCA Civ 900
- AB v CD [2014] EWCA Civ 229
- Araci v Fallon [2011] EWCA Civ 668
- Solent NHS Trust v Hampshire County Council [2015] EWHC 457 (TCC)
- Group M UK Ltd v Cabinet Office [2014] EWHC 3659 (TCC)
- Edenred (UK Group) Ltd, R (on the application of) v HM Treasury & Ors [2014] EWHC 3555 (QB)
- NATS (Services) Ltd v Gatwick Airport Ltd & Anor [2014] EWHC 3133 (TCC)
- Covanta Energy Ltd v Merseyside Waste Disposal Authority [2013] EWHC 2922 (TCC)
- Pearson Driving Assessments Ltd v The Minister for the Cabinet [2013] EWHC 2082 (TCC)
- Newcastle Upon Tyne Hospital NHS Foundation Trust v Newcastle Primary Care Trust & Ors [2012] EWHC 2093 (QB)
- The Halo Trust v Secretary of State for International Development [2011] EWHC 87 (TCC)
- Metropolitan Resources Northwest Ltd v Home Secretary [2011] EWHC 1186 (Ch)
- Resource (NI) v Northern Ireland Courts and Tribunals Service [2011] NIQB 121
- Exel Europe Ltd. v University Hospitals Coventry & Anor [2010] EWHC 3332 (TCC)
- Indigo Services (UK) Ltd v The Colchester Institute Corporation [2010] EWHC 3237 (QB)
- Alstom Transport v Eurostar International Limited & Siemens PLC [2010] EWHC 2747
- Morrison Facilities Services Limited v Norwich City Council [2010] EWHC 487 (Ch)
- European Dynamics SA v HM Treasury [2009] EWHC 3419 (TCC)
- Europaiki Dynamiki v EMSA [2010] ECR 11-313
- Fellowes and Son v Fisher [1976] 1 QB 122 CA
- Evans Marshall & Co Ltd v Bertola SA [1973] 1 WLR 349
- Letting International
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Cases citing this case
9 later cases · 5 positive · 2 caution · 2 negative
Most senior citing decisions:
- Robert Heath Heating Limited v Orbit Group Limited [2024] EWHC 3039 (TCC) applied
- Alstom Transport UK Ltd v London Underground Ltd [2017] EWHC 1521 (TCC) followed
- Alstom Transport UK Ltd v London Underground Ltd & Anor [2017] EWHC 1406 (TCC) applied
- Joseph Gleave & Son Ltd v Secretary of State for Defence [2017] EWHC 238 (TCC)
- Perinatal Institute v Healthcare Quality Improvement Partnership [2016] EWHC 2626 (TCC)
- Energysolutions EU Ltd v Nuclear Decommissioning Authority [2016] EWHC 1988 (TCC)
- Kent Community Health NHS Foundation Trust v NHS Swale Clinical Commissioning Group & Anor [2016] EWHC 1393 (TCC)
- Counted4 Community Interest Company v Sunderland City Council [2015] EWHC 3898 (TCC)
- Openview Security Solutions Ltd v The London Borough of Merton Council [2015] EWHC 2694 (TCC)
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