On 28 February 2020, the High Court handed down judgment in Ryhurst Limited v Whittington Health NHS Trust (judgment available here).
Ryhurst had
been appointed preferred bidder following a procurement for a 10-15 year
Strategic Estates Partnership to assist with rationalisation and redevelopment
of the Trust’s estate, just prior to the Grenfell Tower tragedy. Ryhurst is
part of the Rydon Group, another company which was the design and build
contractor for the Grenfell Tower refurbishment, in which, it has been widely
reported, inflammable cladding was installed.
The Trust
paused the procurement following the Grenfell tragedy, decided to continue, but
later (in 2018) abandoned the procurement for a number of stated reasons including
the lack of stakeholder support for the intended partnership. Ryhurst sued for
damages, alleging that the Trust’s only real reason for abandonment was the
link between Ryhurst and Grenfell, or public ‘pressure’ arising from that
link, and that that was unlawful in EU law. That claim was dismissed. The
Court’s judgment is now the leading domestic authority on the application of
general principles of EU law to an abandonment decision, and also establishes
principles of interest concerning the duty of equal treatment, and the
application of domestic public law in a procurement challenge.
Jason Coppel KC
and Rupert Paines acted for the Trust, instructed by Laura Brealey and Kyle
Duggan of Bevan Brittan LLP.
