Council wins at Court of Appeal

Two years after being taken to the High Court by Roading and Asphalt Ltd (RAL) regarding the awarding of the landfill management contract, Council has been awarded a win at the Court of Appeal.

"This is great news for Council and our ratepayers," said Roger Fisher (who was Council's Assets Group Manager at the time). "Council was surprised by the initial ruling as we felt that our tender process was managed appropriately and the tender documents worded accurately. Our confidence in how the process was handled was the reason why we appealed the decision."

Following the High Court decision, Council paid the settlement amount of $472,830.87 into a holding account. The settlement amount was for the loss of profit amount, interest and legal costs. This will now be repaid in full plus Council's Court of Appeal legal costs.

The legal disagreement occurred when Council didn't award the landfill management contract to the lowest tenderer. Council believed that the tender documentation clearly stated that it may not necessarily select the lowest tender price, depending on other factors; whereas RAL felt that the document indicated the Council must accept the lowest tender.

Council is pleased at the final outcome and the fact that the decision by the Court of Appeal is final; no further appeal is possible. ends words: 212