Diagnostic Medlab Limited v Auckland District Health Board and others - SC 80/2008

Civil appeal – judicial review – the Auckland region District Health Boards (ARDHBs) put out to tender the provision of its community laboratory services – the successful tenderer was Lab Tests Auckland Limited (Lab Tests) and the incumbent provider, Diagnostic Medlab Limited (DML), applied to the High Court for judicial review of the ARDHBs’ decision on the basis that the decision was procedurally flawed – the application was successful in the High Court and but an appeal to the Court of Appeal by Lab Tests was allowed – whether the Court of Appeal failed to interpret the provisions of the New Zealand Public Health and Disability Act 2000 (PHDA) as contemplating and requiring supplementing by principles of natural justice – whether the Court of Appeal applied a wrong and unduly restrictive approach to judicial review in the context of a contracting decision for an essential public health service – whether the Court of Appeal sanctioned a result which undermined the principles of natural justice, compromised the integrity of the relevant contracting process, and eroded public trust and confidence in decision-making by DHBs generally – whether the Court of Appeal failed to recognise that the PHDA contemplates a significant community voice in decisions affecting public health, including by way of meaningful consultation in accordance with expectations established by documents required by the PHDA – whether the Court of Appeal failed to apply any or an appropriate level of scrutiny to the DHBs’ decision on the grounds of unreasonableness – whether the Court of Appeal failed to pay any or proper respect to the High Court’s identification and evaluation of the relevant factual context, and that Court’s advantages as a primary fact-finder and adjudicator of mixed questions of law and fact. [2008] NZCA 385  CA 154/07  25 September 2008