Note on (1) Lancashire Care NHS Foundation Trust and (2) Blackpool Teaching Hospitals NHS Foundation Trust v Lancashire County Council

This case concerned the procurement by the Defendant of a public contract relating to the provision of Public Health Nursing Services for persons aged 0-19 in Lancashire. The Claimants were the incumbent providers. On the procurement (which was conducted under the light touch procedure and which therefore was required to comply with Regulations 74-76 of the PCR 2015) the contract was awarded to Virgin Care Services Ltd. In essence, the Trusts challenged the Authority’s evaluation of the bids, the scoring methodology applied, and the transparency of the award criteria. The TCC (Stuart-Smith J) found that the reasons given by the Authority for the scores awarded to the Claimants and to Virgin were insufficient in law. That finding was itself sufficient for the contract to Virgin to be set aside.

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The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

The right to deduct in Luxembourg – (VAT) world domination continues

Case C-159/17, Întreprinderea Individuală Dobre M. Marius, ECLI:EU:C:2018:161 (judgment of 7 March 2018)

Case C-533/16, Volkswagen AG, ECLI:EU:C:2018:204 (judgment of 21 March 2018)

Case C-8/17, Biosafe v Flexipiso, ECLI:EU:C:2018:249 (judgment of 12 April 2018)

Case C‑81/17,  Zabrus Siret SRL, ECLI:EU:C:2018:283 (judgment of 26 April 2018)

The Court of Justice (CJEU) has released four recent judgments concerning compatibility with EU law of national restrictions on the right to deduct input VAT. The judgments confirm the “dominant position” of the right to deduct in the common system of VAT.

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The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

This case note was first featured in the June 2018 issue of De Voil.

Flynn and Pfizer v Competition and Markets Authority [2018] CAT 11: the test for excessive pricing

The Competition Appeal Tribunal (‘the Tribunal’) handed down its judgment in Flynn and Pfizer v CMA [2018] CAT 11 on 7 June 2018. The Tribunal has set aside parts of the Competition and Markets Authority’s (‘CMA’) decision imposing combined fines on the pharmaceutical companies, Pfizer and Flynn, of approximately £90 million for charging (allegedly) unfairly high prices for the anti-epileptic drug (phenytoin sodium capsules) in breach of Article 102 TFEU / the Chapter II prohibition. In doing so, the Tribunal conducted a significant review of the relevant law relating to the test for identifying unfair pricing.

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Mark Brealey QC acted for Pfizer and Ronit Kreisberger acted for Flynn.

The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

Two wrongs don’t make a right or Public law orthodoxy rules again

Overview

On 16 May 2018, the Supreme Court handed down judgement in an appeal concerning the way in which the Office of Fair Trading (the “OFT”) conducted settlement negotiations under its so-called “Early Resolution Process” (“ER Process”) with parties subject to its tobacco investigation. It held that a mistake made to the benefit of one party during settlement negotiations is not required to be replicated to the benefit of other parties. It reached this conclusion, overturning the Court of Appeal’s decision, on the basis of traditional principles of public law rationality and legitimate expectation. The Supreme Court rejected the argument that there are distinct legal criteria of “equal treatment” and (substantive) “fairness” amongst the traditional principles of judicial review.

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Daniel Beard QC and Brendan McGurk were instructed by CMA Legal for the successful appellant.

The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

Astellas – Pharmaceutical Regulation – is communal cooking in the kitchen too hot to handle?

The extent to which one NCA can depart from an MA that has been previouslygranted by another Member State raises rather dry and technical questions ofEuropean law. However, it has huge commercial significance for the entitiesinvolved, ie the actual or would be holder of the MA, on the one hand, andgeneric manufacturers on the other that would like to market and sell theirequivalent medicines based on the original relevant medicinal product.

The enforcement of the competing rights given to innovators and genericmanufacturers has become increasingly adversarial, either with genericsseeking multiple authorisations in different Member States or challenging theinitial MA that had been granted in favour of the MA holder or the innovator MA holder seeking to protect its rights conferred in terms data exclusivity.

Astellas was one example of such a case. Astellas challengeda generic MA that had been granted by the Finish NCA and the Supreme Administrative Courtreferred two questions for preliminary ruling to the CJEU. The first question waswhether a concerned Member State under the decentralised procedure wascompetent to determine the time at which the data exclusivity period startedto run. The second question was, assuming it was not, whether the nationalcourts could determine the period of data exclusivity and whether the principleof effective legal protection under Article 47 of the Charter required the nationalcourt to scrutinise the original MA granted in another Member State and/ordepart from it in order to give effect to the MA holder’s rights.

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George Peretz QC acted for the United Kingdom Government.

The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

“An ingenious attempt to exploit a loophole”: High Court rejects generic manufacturer’s JR of marketing authorisation refusal

R (Teva B.V.) v Secretary of State for Health [2018] EWHC 228 (Admin)

Biogen Idec Ltd was an interested party

Overview

On 13 February 2018, the High Court (Jay J) dismissed the application of Teva BV (“Teva”) for judicial review of the decision of the UK’s Medicines and Healthcare Products Regulatory Agency (“MHRA”) not to grant Teva a marketing authorisation (“MA”) for its generic version of Tecfidera, a drug used to treat multiple sclerosis.

Teva’s argument that the MHRA was not bound by a conclusion, appearing in a recital to the Commission Decision granting an MA to the reference product, as to the applicable period of data exclusivity for that reference product was found to be “ingenious” ([152]) but ultimately unsuccessful.

The judgment has important implications for pharmaceutical regulation, both now and post-Brexit. The High Court made key rulings about the role of national licensing authorities, including the requirement that they give effect to the package of rights emanating from the grant of a marketing authorisation by the Commission.

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Anneli Howard and Anneliese Blackwood were instructed by the Government Legal Department for the Defendant.

The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

 

What does ‘fail’ mean anyway? MLS (Overseas) Limited v The Secretary of State for Defence

Summary

Just before Christmas, the High Court (Mrs Justice O’Farrell) delivered judgment in MLS (Overseas) Limited v The Secretary of State for Defence [2017] EWHC 3389 (TCC). There had been some anticipation that, as the first post-Energy Solutions ¹ case in which allegations of manifest error formed a central part of the argument, the judgment might shed some light on what approach a court would take to the higher degree of scrutiny arguably indicated by Energy Solutions. In the end, however, not much could be gleaned from the court’s judgment in this respect. The more interesting findings concerned transparency and the implications of any vagueness in an ITT’s description of the evaluation process. The MoD’s ITT had failed to spell out the consequence of failing a certain pass/fail criterion, which the court found ultimately invalidated the rejection of MLS’ tender on that basis. In that respect, the judgment joins a line of cases highlighting to contracting authorities the pitfalls of a lack of clarity in an ITT. For bidders, however, the message is perhaps less clear. The court rejected an argument that because the ITT itself had not been challenged (and a challenge would now have been out of time) it was not open to MLS to challenge the award on the basis of an ambiguity in the ITT. This seems to at least leave room for the question whether it is always best to challenge an ITT promptly, or whether in some cases it may well be opportune to retain some vagueness as a source of a potential future challenge to the award decision.

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Philip Moser QC and Daisy Mackersie acted for MLS (Overseas) Limited.

Alan Bates and Michael Armitage acted for the Secretary of State for Defence.

The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

ING Intermediate Holdings Limited v HMRC [2017] EWCA Civ 2111

The Court of Appeal’s decision in this case, handed down on 13 December 2017, deals with fundamental concepts of VAT, namely whether there was a supply of services, and if so, whether it was ‘for consideration’, and if so, whether the consideration could be expressed in monetary form.  The case concerns deposit accounts provided by two members of the appellant’s VAT group referred to as “IDUK” and the ability of the group to recover input tax.

Peter Mantle acted for the Respondents, instructed by HMRC.

The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.

To read the full case note please click here.

Sainsbury’s Supermarkets Ltd v (1) Visa Europe Services LLC (2) Visa Europe Ltd and (3) Visa UK Ltd

In a much-anticipated decision, the High Court (Phillips J.) has delivered judgment in Sainsbury’s Supermarkets Ltd v. (1) Visa Europe Services LLC and ors. The Court dismissed Sainsbury’s Claim. This case follows two earlier conflicting decisions of the High Court and Competition Appeals Tribunal in respect of the same subject-matter: Asda Stores Ltd v. Mastercard Inc [2017] 4 C.M.L.R. 32 and Sainsbury’s v. MasterCard [2016] CAT 11.

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Simple Interest is an Adequate Remedy for Overpaid VAT

Littlewoods Limited & others v Commissioners for Her Majesty’s Revenue and Customs [2017] UKSC 70

The Supreme Court has decisively and unanimously concluded that s78 Value Added Tax Act 1994 (“VATA 1994”) provides complete and adequate compensation for being kept out of the money by providing for simple interest on overpaid VAT.   The words “if and to the extent that they would not be entitled to do so apart from this section”  in s78(1) did not preserve common law rights to compound interest alongside s78, otherwise s78 “would effectively become a dead letter”.  Those words only preserve other statutory rights to interest.  Further, s78 does not violate EU law by denying taxpayers “an adequate indemnity”.

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The comments made in this case note are wholly personal and do not reflect the views of any other members of Monckton Chambers, its tenants or clients.