Brent LBC v Risk Management Partners Ltd

[2011] UKSC 7

Ratio Decidendi

Local authorities' powers to enter into insurance arrangements are limited by statute. The general power of competence must be exercised within statutory constraints, including procurement rules.

Hechos

Brent Council participated in a mutual insurance scheme without a competitive procurement process. A rival insurer challenged the arrangement.

Resumen de la sentencia

The Supreme Court held that the council had acted ultra vires in entering the arrangement without statutory authority. Public procurement rules must be followed for contracts above the threshold.

Citas clave

"The council had no power to enter into this arrangement without complying with procurement obligations."
— Lord Hope

Tratamiento posterior

Applied

Applied in subsequent public procurement challenges.