Marples v Secretary of State for Education

In December 2016, Aspire Achieve Advance Ltd (3AAA), a provider of apprenticeship services under a contract with the Skills Funding Agency (SFA), sought the SFA’s approval for a change of control to a private equity purchaser. The SFA declined to approve the change of control and shortly thereafter, the proposed purchaser withdrew. Some of the shareholders of the parent company of 3AAA sued the Secretary of State for damages, alleging that the SFA’s decision not to approve the change of ownership amounted to misfeasance or was negligent.

After a 15-day trial, Mr Justice Rajah has delivered a judgment dismissing the claims. In relation to misfeasance, the Court held that there was no targeted or untargeted malice (paras 173-177). In relation to negligence, the Court held that the SFA did not owe a duty of care to the Claimants when taking the decision (para 210). Furthermore, in relation to both causes of action, the Court held that the Claimants had failed to establish causation of any loss, including because “the value of the company was the same before and after the Decision Letter” (paras 214-219).

James Segan KC and Tom Cleaver acted for the Secretary of State, instructed by the Government Legal Department.

The judgment may be found here.