Hi °C | Lo °C A unit of building materials giant CRH has been treading on thistles in Scotland.
The Punt notices that a Scottish company called Farrans (Construction) sued Glasgow City Council in 2008 after it failed to win a tender for flood-protection works.
Farrans (Construction) took the action alleging breach of public contracts legislation in Scotland and of European directives.
But the case took a twist last year when it emerged that the Farrans firm in Scotland is actually a dormant company, with no assets or employees.
It's a unit of a company called Northstone (Northern Ireland), which is in turn part of CRH. Northstone does have a Farrans unit which actively trades in Northern Ireland.
But the Scottish courts are suitably unimpressed that the dormant status of Farrans (Construction) wasn't disclosed in legal proceedings.
In a ruling delivered just days ago, the court says that the documentation completed as part of the 2008 tender process by the firm "materially misrepresented that the pursuer – Farrans (Construction) – had employees, assets and other resources sufficient to properly carry out the works".
It adds that while Northstone directors "did not intend to deceive or misrepresent the position", they failed to divulge the relationship between Northstone and Farrans (Construction).
Northstone would have undertaken the works had Farrans been awarded the tender for the works.
But the court deemed that Farrans (Construction), being dormant was not at risk of loss, has no relevant claim and dismissed the action.
Irish Independent
