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R (on the application of Gallagher and another) v Basildon District Council

 

Judgment


Mr Justice Kenneth Parker :


1.                  In this application the Claimants, Paula Gallagher and Mary McCarthy, challenge the decision of Basildon District Council (“the Council”), confirmed following a reconsideration on 25 June 2009, to decline to follow the recommendation of the Local Government Ombudsman (“the LGO”), who is the interested party in these proceedings, to pay compensation to the Claimants.

.Counsel for the Claimants conceded that the Parliamentary Commissioner’s recommendations could not be binding on the Secretary of State but argued that the findings were.Bean J at first instance held that the Secretary of State was bound by the Parliamentary Commissioner’s first finding of maladministration, namely that the government had issued misleading official information, and that he could reject that finding only if the finding was itself unreasonable or otherwise legally flawed.In any event Bean J held that it was irrational for the Secretary of State to reject the Parliamentary Commissioner’s findings.Accordingly, Bean J quashed the Department of Work and Pensions’ decision to reject that finding and directed that the decision to reject the first recommendation restoring benefits be reconsidered.The Secretary of State appealed and the Court of Appeal took a somewhat different view about the correct legal test to be applied to the Secretary of State’s rejection of the findings of the Parliamentary Commissioner. returned to this issue in [2009] EWHC 2495 Admin (“”).Lord Justice Carnwath, giving the judgment of the Court, said this:

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