Contracts – residential homes – provider – private sector – conditions – reasonableness
The Cleveland Care Homes Association sought judicial review of a decision of the County Council to only issue contracts to residential community care providers on the basis of agreeing to terms in the contract which the CCHA argued were onerous.
The Court held that the National Health Service and Community Care Act 1990 and the Community Care (Residential accommodation) Act 1992 made changes which affected residential care arrangements in the private sector and the proposed conditions nullified the purpose of that legislation. Conditions would not be upheld unless the local authority acted reasonably in imposing them.