Alstom Transport v Eurostar International Ltd
[2010] EWHC 2747 (Ch)
Independent editorial summary — not the official judgment. Read the full judgment via the source link.
Ratio Decidendi
A claim for a declaration of ineffectiveness must be brought promptly. The court will consider the importance of the contract to the contracting authority and third parties when deciding whether to grant such relief.
Facts
Alstom challenged the award of a contract for new Eurostar trains to Siemens. Alstom had also tendered and alleged the procurement was unlawful. It sought a declaration of ineffectiveness, which would cancel the contract.
Judgment Summary
The court held that even if there had been breaches, it would not be appropriate to declare the contract ineffective given its importance to cross-Channel rail services and the legitimate interests of passengers. Damages were the appropriate remedy.
Key Quotes
"The public interest, which I have held is relevant to the balance of convenience militates also in favour of the refusal of interim relief. First, the delay for Eurostar will be costly and will affect its competitive position. The travelling public will be affected by having new trains delayed, and probably by the additional costs of the delay."
— Vos J at [138](verbatim, verified against the judgment)
Subsequent Treatment
Important on the exercise of discretion in ineffectiveness claims.
What To Do Next
Get Professional Help