Kellogg Brown & Root Limited v MOPAC & MPS [2021] EWHC 3321 (TCC)
The High Court (Joanna Smith J) has ruled that the automatic suspension should be lifted in respect of a c. £400m framework agreement being let for use by GLA and central government bodies relating to the provision of outsourced and business support services.
In summary, the Judge held that damages would be an adequate remedy for the Claimant and that the balance of convenience favoured the lifting of the suspension, notwithstanding the availability of an expedited trial.
The Court’s judgment provides important guidance on the legal principles applicable to applications to lift automatic suspensions in procurement disputes, in particular in relation to the adequacy of damages as a remedy for a claimant.
Joanna Smith J’s judgment carefully considers, and rejects, dicta from recent cases in which some High Court Judges have appeared to suggest that the availability of an expedited trial was a factor relevant to the assessment of the adequacy of damages.
The judgment also provides important guidance on both the nature of the evidence which must be provided to support arguments regarding the alleged inadequacy of damages and the legal principles which the Court is required to apply in assessing such contentions, namely orthodox tortious principles of remoteness and causation.
The judgment is an important one, which should be carefully considered by both claimants and defendants in this field.
A copy of the judgment can be found here.
Joseph Barrett of 11KBW was sole counsel for the successful Defendants, MOPAC and the MPS.
