Brent council today lost its battle against Risk Management Partners [RMP] to channel insurance through the London Authorities Mutual Limited [LAML].

In the second judgment in a landmark case, the High Court found that Brent LBC acted unlawfully in side-stepping EU-regulated procurement procedures and awarding its insurance services direct to the LAML, a mutual insurer for London borough councils.

The unlawful finding by the High Court will send a chilling signal to all local authorities that they must adhere strictly to the tender framework.

RMP, a company providing insurance services to local authorities, pursued the test case against Brent after Brent abandoned the EU-regulated public procurement process and awarded the contract for its insurance services to LAML, outside the tender framework.

Jolyon Patten, partner at national law firm Halliwells LLP, who acted for RMP, said the judgment was a relief to all those providing insurance services to the local government arena.

Jolyn Patten described the outcome of the case as a tremendous success and added, "LAML has never explained how its operating as a monopoly could benefit authorities. These Regulations are there precisely to ensure transparency, fairness and competition in public procurement and this decision underlines the fundamental importance of those principles to the local government sector.”