Supreme Court supports LAML

Thursday 10th February 2011

The Supreme Court has now vindicated those who set up the London Authorities Mutual Ltd (LAML) by affirming that the tendering procedure was not flawed and local authorities were entitled to enter into insurance arrangements with LAML.

After years of uncertainty, the Supreme Court has allowed the appeal of the London Borough of Brent and others against a Court of Appeal ruling which found that Brent had no power to participate in establishing the Mutual or to become a member or make any payments to it. There has in fact been further legislation in 2009 to give power to local authorities to enter into mutual insurance arrangements, and government believes that mutuals are often cost-effective and economical in the use of public money.

The judgment can be found here. In addition there is a Press Summary.

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