Firebuy Resists Heat Brought on by Procurement Injunction Challenge

10 Oct 2007 | by Monckton Chambers

Lion Apparel Systems Ltd v Firebuy Ltd [2007] EWHC 2179 (Ch)

In Lion Apparel Morgan J refused to grant an interim order suspending a procurement process, where the contracting authority had selected its preferred bidder and was about to conclude the contract. In determining the interim application, Morgan J asked whether allegations of breach of the procurement rules put forward by an unsuccessful bidder disclosed a serious issue to be tried.  His judgment addresses the standard of review to be applied by the courts to the exercise of discretion by contracting authorities.  It also takes a novel approach to proof of loss or damage by the claimant when applying for an interim order in the procurement context.  Both are areas lacking in previous authority, at least at the domestic level, and accordingly the decision is of interest.