Coun­cil wins court case

South Waikato News - - NEWS -

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

‘‘This is great news for the coun­cil,’’ said Roger Fisher (who was the coun­cil’s As­sets Group Man­ager at the time).

‘‘ The coun­cil was sur­prised by the ini­tial rul­ing as we felt that our ten­der process was man­aged ap­pro­pri­ately and the ten- der doc­u­ments worded ac­cu­rately.

‘‘Our con­fi­dence in how the process was han­dled was the rea­son why we ap­pealed the de­ci­sion.’’

Fol­low­ing the High Court de­ci­sion, the 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 the coun­cil’s Court of Ap­peal costs.

The le­gal dis­agree­ment oc­curred when the coun­cil didn’t award the land­fill man­age­ment con­tract to the low­est ten­derer. The 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.

The coun­cil says it is pleased at the fi­nal out­come and the fact that the de­ci­sion by the Court of Ap­peal is fi­nal.

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