Loc8 Code took an action in 2022 against the Department of the Environment, Climate and Communications, Capita Business Support Services and An Post, making its conspiracy claims and seeking damages.
But the High Court struck out the action earlier this year, noting that Loc8 Code’s claims were years out of time. That ruling was appealed against, but now the Court of Appeal has upheld the High Court’s decision.
Mr Justice Senan Allen of the Court of Appeal also lamented the increasing complexity in litigation.
“Modern litigation – and the number of us who have known any other kind is dwindling – has become very complex,” he noted in his judgment. “I have often wondered whether, perhaps, a better word would be complicated.”
Loc8 Code claimed it suffered €12m in losses as a result of an alleged conspiracy in the awarding of the contract by the Department of Environment, Climate and Communications to Capita Business Support Services Ireland, trading as Eircode.
In 2011, Loc8 Code’s solicitors wrote to the department, stating the firm wished to participate in the tender process for the national postcode service, but had been precluded under the terms of the prequalification questionnaire.
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That questionnaire required that each member of any consortium should have an annual turnover of at least €40m. Loc8 Code did not end up participating in the tender process.
An Post took part in the tender process, but was unsuccessful. In 2013, Capita secured a 10-year contract to manage the postcode service, with the contract capable of being renewed for an additional five years.
Loc8Code sought damages for alleged conspiracy and injunctions against Capita and the department, including one restraining the use of “state political and administrative resources to unlawfully promote the commercial activities” of Capita.
It also sought an injunction restraining the department from renewing the Eircode contract in December 2023 or pending determination of the proceedings, whichever was later.
Counsel for Loc8 Code had suggested that the EU had given a directive that Ireland should have a postcode, which was something which An Post did not want, it was claimed, because it would have affected its monopoly. He claimed the department and An Post therefore entered an agreement with Capita to develop a useless postcode.
The claims were strongly denied by the respondents.
Last December, High Court judge Mr Justice Max Barrett found that in essence, the appellant’s claim was for breach of public procurement law, which was years out of time. He noted there were also claims concerning conspiracy, breach of competition law, breach of state-aid rules, and interference with the conclusion of contracts.
Those other claims, said Mr Justice Barrett, “were vague and inadequately particularised” and were also years out of time. The judge struck out the proceedings against all three defendants.
In its appeal, Loc8 Code claimed there was an irregularity introduced into the tender process in October 2013, of which it first became aware in June 2018. But the Court of Appeal rejected this and upheld the High Court’s decision.
