Summary
In applications concerning the automatic suspension of a public procurement contract, damages may be inadequate where loss of the contract would probably cause significant, irrecoverable financial loss through lost commercial opportunities, including opportunities arising from enhanced reputation. The assessment is fact-sensitive and requires cogent, plausible evidence rather than assertion, but detailed financial quantification is not always possible.
Damages may also be inadequate for a public authority where maintaining the suspension delays material improvements to public services that cannot readily be measured financially. The balance of convenience must nevertheless be assessed in the particular circumstances, including the likely trial date, the availability of an interim extension, and any delay by the authority in seeking to lift the suspension.
Factual background
Involve, the unsuccessful bidder in a procurement conducted under the Public Contracts Regulations 2015, challenged its exclusion after receiving the minimum score on a technical tender question was not achieved. It alleged unlawful re-moderation, breaches of transparency, equal treatment and proportionality, and manifest error.
The Secretary of State applied to lift the automatic suspension so that the contract could be awarded to Accenture. Involve applied for an expedited trial. The court considered whether damages would adequately compensate either party and where the balance of convenience lay, particularly given the expiry of the incumbent contract and the prospect of an extension.
Held
- Application to lift dismissed. The automatic suspension remained in place. No order was required on the expedition application because the trial could be fixed under the court’s ordinary available dates.
- The court applied the American Cyanamid questions identified in Camelot UK Lotteries v Gambling Commission: whether there was a serious issue to be tried; whether damages were adequate for the claimant; whether damages were adequate for the defendant if suspension continued; and, if necessary, where the balance of convenience lay. It was common ground that there was a serious issue to be tried.
- Damages were not an adequate remedy for Involve. The evidence plausibly showed that losing a prestigious contract would deprive it of significant opportunities to develop and market its own proprietary technology and obtain further public and private sector work. Loss of reputation was relevant only insofar as it evidenced financial losses likely to be significant and irrecoverable. The court rejected the need for precise financial figures where the future opportunities could not fairly be quantified at the interim stage.
- Damages were also not an adequate remedy for DWP. Maintaining the suspension would delay recording and transcription, operational control, customisation, GOV.UK integration and potential security improvements under the proposed solution. Those consequences were not readily compensable in damages, although the position was not catastrophic because the existing service could continue.
- The balance of convenience nevertheless favoured Involve. Its undertaking, supported by the licensing arrangements and the licensor’s position, meant that the existing contract could safely be extended beyond 28 February 2026. There was therefore no realistic risk that DWP would lose all video-conferencing facilities. A two-week trial beginning on 13 January 2026 could fairly be prepared for, and DWP’s earlier delay in applying to lift the suspension weighed against it.
The court’s approach to earlier authorities
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Appellate history
First-instance decision. No lower-court decision or appeal history was stated in the judgment.
Key cases cited
8 authorities cited.
- Medequip Assistive Technology Limited v The Mayor and Burgesses of the Royal Borough of Kensington and Chelsea & Ors [2022] EWHC 3293 (TCC)
- CAMELOT UK LOTTERIES LIMITED v THE GAMBLING COMMISSION [2022] EWHC 1664 (TCC)
- Kellogg Brown & Root Ltd v Mayor's Office for Policing and Crime [2021] EWHC 3321 (TCC)
- Vodafone Ltd v Secretary of State for Foreign, Commonwealth, & Development Affairs [2021] EWHC 2793 (TCC)
- TES Group Ltd v Northern Island Water Ltd [2020] NIQB 62
- Bombardier Transportation UK Ltd v Hitachi Rail Europe Ltd & Ors (Rev 2) [2018] EWHC 2926 (TCC)
- Alstom Transport UK Ltd v London Underground Ltd [2017] EWHC 1521 (TCC)
- OpenView Security Solutions Limited v The London Borough of Merton Council [2015] EWHC 2694
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Cases citing this case
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