On 9 February, the Supreme Court overturned an earlier Court of Appeal ruling on the application of the “in house” exception for the procurement of a contract for insurance services. The case concerned an arrangement among a group of London local authorities for primary insurance service to be provided by London Authorities Mutual Ltd (LAML), which was established by the local authorities for this purpose. In 2007, the London Borough of Brent (Brent) launched a tender process for insurance services which it later abandoned in favour of entering into a contract with LAML, which had not participated in the tender. One of the bidders, Risk Management Partners (RMP), challenged the award to LAML on the basis that it breached the procurement rules. The claim was upheld before the lower Courts on the ground that Brent had not demonstrated that it was entitled to rely upon the ‘in house’ exemption established by the European Court’s Judgment in Teckal, because Brent did not exercise control over LAML in the manner it would over its own department. Brent, and another local authority, Harrow, appealed the case to the Supreme Court. The Supreme Court reached the view that the Teckal exception was met by virtue of the fact that the local authorities had co-operated to establish, finance and control LAML and because the majority of its business is conducted with the local authorities. Therefore the Public Contracts Regulations 2006 did not apply to the contract with LAML.