RAL second appeal dismissed

Two and a half years after being taken to the High Court by Roading and Asphalt Ltd (RAL) regarding the awarding of the landfill management contract, RAL's second appeal to the Supreme Court has been dismissed.

"This is again great news for Council and our ratepayers," said Roger Fisher (Special Projects Manager). "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 in the first place; and why we were confident RAL's second appeal would also be dismissed."

Following the initial 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 was repaid in full plus Council's Court of Appeal legal costs. Following the second appeal dismissal, RAL will again reimburse Council's 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 Supreme Courts puts an end to the process. ends words: 243