Judgment: 2023-07-25 · Court archive

High Court lifts suspension blocking €800m Coast Guard rescue contract

The ruling lets the Transport Minister proceed with signing a new search and rescue contract with Bristow while CHC Ireland’s challenge to the tender continues. The court did not decide the challenge’s merits.

High Court, Commercial · [2023] IEHC 457

Who, what, where, when and why

Who
  • CHC Ireland DAC (Applicant)
  • The Minister for Transport (Respondent)
  • Bristow Ireland Ltd.
What

The ruling lets the Transport Minister proceed with signing a new search and rescue contract with Bristow while CHC Ireland’s challenge to the tender continues. The court did not decide the challenge’s merits.

Where

Places mentioned in the report

  • Ireland
When

Judgment:

Why

Reasons reported in the judgment

The court concluded that the balance of justice favoured lifting the suspension, noting it could not determine which side was right about the claimed risks to life. The judgment records that the court would hear from the parties about any resulting orders. It does not record the terms of a separate final order in this source.

The High Court has lifted the automatic suspension preventing the Minister for Transport from signing a €800 million search and rescue aviation contract with Bristow Ireland Ltd. The decision clears the way for the contract to be signed while incumbent provider CHC Ireland DAC’s challenge to the tender process proceeds. It does not determine whether that challenge is well-founded or whether the tender was lawful.

Mr Justice Twomey delivered the judgment on 25 July 2023 after hearing the application on 4 July and further submissions on 12 July. The Minister conceded, for this application only, that CHC had raised a fair question to be tried. The issue before the court was whether the balance of justice justified continuing the suspension, which arose automatically when CHC filed its proceedings on 14 June.

CHC alleges, among other grounds, that Bristow’s tender was abnormally low and that political influence affected the Minister’s decision. The Minister and Bristow dispute the case for keeping the suspension in place. Those allegations remain for the substantive proceedings. The judge said the claimed political interference could not be resolved at this preliminary stage; the senator named in the judgment had not been given an opportunity to respond at this hearing.

The parties gave opposing accounts of the risks to rescue services. The Minister and Bristow argued that delay could disrupt a complex, two-year transition involving five new helicopters, a modified fixed-wing aircraft and about 8,000 tasks. They said this could prevent Bristow from starting on 1 July 2025, when CHC’s existing contract is due to expire, and delay service enhancements. CHC argued that the transition period was too short and offered to continue providing services if needed.

The judge did not decide whether Bristow would be ready on time or whether an extension of CHC’s contract would be lawful. The extension’s duration and value were uncertain, so the court could not determine whether it would breach procurement rules. Those doubts weighed in favour of lifting the suspension, as did the risk that continued delay would prevent Bristow from meeting the planned start date. The judge also treated the tender award as a measure that appeared valid at this stage and said lifting the suspension preserved the status quo for this kind of procurement case.

The court concluded that the balance of justice favoured lifting the suspension, noting it could not determine which side was right about the claimed risks to life. The judgment records that the court would hear from the parties about any resulting orders. It does not record the terms of a separate final order in this source.

Read the original court judgment

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