A Penryn based autism organisation faces a hefty legal bill after the High Court struck out a claim that Cornwall Council had been underpaying for residential care placements since 2006.

Cornwall Council has welcomed the decision of the High Court on 19 February 2015 to strike out the claim made by Devon and Cornwall Autistic Community Trust (trading as Spectrum) against the authority.

Spectrum, which provides residential care facilities for adults with learning disabilities, had alleged that since at least 2006 the Council had underpaid for services provided to eight adults that it had placed in the care of Spectrum. 

Since the start of these proceedings the Council maintained that it has paid Spectrum the fees agreed for these placements and that "no evidence of under payments has ever been provided". 

The case was scheduled to go to trial on 18 February however the Council made an application immediately prior to this date that Spectrum’s claim should be dismissed. 

The grounds for this application were that the application had no reasonable prospect of success and Spectrum had failed to provide details of the sums allegedly owed and comply with Court orders.

After considering the facts the judge granted the Council’s application to strike out the claim.  In dismissing the claim Mr Justice Davis noted that the witness statements produced by Spectrum “provides no evidence to show that [it] was not being provided with reasonable recompense, rather the reverse”. 

Spectrum has been ordered to pay the Council’s costs for the whole proceedings on an indemnity basis to reflect the way in which they have conducted this litigation.

A spokesperson for the Council said “We are extremely pleased with this decision which recognises that the Council has paid Spectrum a reasonable amount for the services it has provided”. 

The council says that it will ensure that the eight individuals will continue to receive the appropriate services and support.

Strike out applications are made under the Civil Procedure Rules and are used where a party is pursuing a case which has no reasonable basis, would be a waste of resources if it continued and to prevent proceedings which are an abuse of process.

Costs are normally only awarded on an indemnity basis where the claim or the claimant’s conduct is found by the Court to be out of the ordinary.

A spokesman for Spectrum said: "Spectrum took legal action for the recovery of a £2 million underpayment by the Council towards the care costs of eight of its service users. Spectrum alleged the Council knew that the level of service being provided was requisite and  being properly delivered hence it should be recompensed. 

"Spectrum over a six year period had tried to resolve the matter through numerous letters but the Council refused time and time again relying on the absence of a contract.

"The court dismissed the case on the basis that there was no contract. 

"Spectrum had provided the care but the court concluded it had done so without a contract.

"The Council by refusing to sign a contract jeopardised the welfare of these eight service users. We're it not for Spectrum's goodwill the service users would have been at risk and seriously prejudiced.

"Spectrum remains committed to its service users and will readily fight for what the service users are entitled to. "