Citation: [2025] EWHC 744 (TCC)
The court considered an application to lift the automatic suspension imposed under the Public Contracts Regulations 2015.
Background
Devon County Council procured a new 5-year contract (worth approximately £46 million) for community healthcare equipment and related services. The contract was awarded to NRS, the interested party. Millbrook Healthcare Limited was the unsuccessful incumbent provider.
Millbrook raised concerns over NRS's information security and financial standing following a cyber incident at NRS in March 2024. The Council undertook due diligence and found no issues with NRS's ability to perform the contract.
Millbrook issued proceedings on 23 January 2025 challenging the tender decision and seeking to set aside the contract award to NRS. An automatic suspension was imposed under the Public Contracts Regulations 2015. The Council applied to lift the suspension, and Millbrook sought an expedited trial.
Millbrook argued that damages would be inadequate due to potential loss of profits, staff exodus, reputational harm, and adverse impact on its competitive position. Devon County Council and NRS contended that damages would adequately compensate Millbrook and highlighted the public interest in implementing the new contract without delay.
Decision (Anneli Howard KC)
The Court granted the defendant's application to lift the automatic suspension, allowing the contract to be awarded to NRS. The application for an expedited trial was dismissed.
Millbrook had not provided cogent evidence of significant financial losses that were irrecoverable as damages. It held that the potential harm to Millbrook from loss of the contract did not outweigh the adverse impact on the Council and public interest in delaying the implementation of the new contract, which aimed to deliver service improvements and cost savings for vulnerable users. The balance of convenience favoured lifting the suspension.
Representation
Patrick Halliday (11KBW) for the Claimant, instructed by Gowling WLG (UK) LLP.
Joseph Barrett KC (11KBW) for the Defendant, instructed by DAC Beachcroft LLP.
Simon Taylor (Keating Chambers) for the Interested Party, instructed by Anthony Collins Solicitors LLP.
The judgment can be found here.
