Risk Management Partners v London Borough of Brent

Lord Justice Stanley Burnton has handed down two High Court judgments in actions brought by Risk Management Partners Limited against the London Borough of Brent.  Both concerned the legality of Brent’s arrangements with a Mutual insurer, the Local Authorities Mutual Limited (“LAML”).

In the first judgment on 22 April 2008 ([EWHC] 692 (Admin)), Burnton LJ held that Brent had no power to participate in LAML, because neither section 111 of the Local Government Act 1972 nor the “wellbeing power” in section 2 of the Local Government Act 2000 gave authority to the Council.

In the second judgment on 16 May 2008 ([EWHC] 1094 (Admin)), Burnton LJ further held that Brent was not entitled to rely on the so-called “Teckal exemption” in order to avoid going through the EU-mandated procurement process when awarding contracts of insurance to LAML.