Summary: We will not investigate this complaint that the Council’s actions forced a Care Home to close. Mr X has a legal remedy in court on a contractual dispute.

The complaint

1. Mr X complained the Council did not pay the full fees for residents placed at the Care Home. He said the Council made deductions to resident’s fees whilst they were in hospital, and these deductions were in breach of contract. Mr X said the loss of fees resulted in the Care Homes closure. He wants financial compensation.

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The Ombudsman’s role and powers

2. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
3. The law says we cannot normally investigate a complaint when someone could take the matter to court. However, we may decide to investigate if we consider it would be unreasonable to expect the person to go to court. (Local Government Act 1974, section 26(6)(c), as amended)

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How I considered this complaint

4. I considered information provided by the complainant and the Council.
5. I considered the Ombudsman’s Assessment Code.

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My assessment

6. Mr X’s complaint is about the Council not fulfilling its contractual obligations in the payment of resident’s care home fees. This is a legal disagreement about the terms of contract, which is a matter the courts are best placed to determine. Only a court can decide such legal claims, including whether a party has complied with and fulfilled all the contract’s terms and, if not, the amount of any compensation due. Therefore, I consider it reasonable for Mr X to take his claim to court to pursue the outcome he seeks.  

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Final decision

7. We will not investigate Mr X’s complaint because it is an allegation against the Council breach of contract, which is best considered by the court.

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Investigator's decision on behalf of the Ombudsman