BCA Pension Trustees Ltd, Re [2015] EWHC 3492 (Ch) (02 December 2015)

BCA Pension Trustees Ltd, Re [2015] EWHC 3492 (Ch) (02 December 2015)

Rule 22 of the Consolidated Rules contains a clear drafting mistake by omitting wording necessary to identify which pension increase rate applies to which benefits. The court is satisfied, based on the admissible background and the nature of the omission, that the rule should be construed as if the omitted wording from the Original Rules is included. This construction is necessary to make the rule workable and does not improperly extend the principles of correction by construction. The trustee is authorised to administer the Plan on this basis under section 48 of the Administration of Justice Act 1985.

Citation
[2015] EWHC 3492 (Ch)
Parties
Claimant: BCA Pension Trustees Limited
Jurisdiction
England and Wales
Judgment Date
02 December 2015
Procedural Posture
Part 8 Claim Under Section 48 of the Administration of Justice Act 1985 / Judgment on Application for Authorisation to Rely on Counsel's Opinion Regarding Construction of Pension Scheme Rules
Outcome
Application granted
Legal Topics
Construction of Trust Documents, Pension Scheme Rules, Correction of Mistakes by Construction, Section 48 Administration of Justice Act 1985
Trusts Pensions Equity Construction of Trust Documents Pension Scheme Rules Correction of Mistakes by Construction Section 48 Administration of Justice Act 1985

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 13 Party arguments 2
Sign in to unlock

Parties

BCA Pension Trustees Limited

Claimant

Procedural Posture

Part 8 Claim Under Section 48 of the Administration of Justice Act 1985 / Judgment on Application for Authorisation to Rely on Counsel's Opinion Regarding Construction of Pension Scheme Rules

Legal Issues

  1. 1 Whether Rule 22 of the Consolidated Rules of the BCA Pension Plan should be construed to include omitted wording from the Original Rules to clarify the applicable pension increase rates
  2. 2 Whether the court can authorise the trustee to administer the Plan in reliance on counsel's opinion under section 48 of the Administration of Justice Act 1985
  3. 3 Whether notification to members is required upon making such an order

Ratio Decidendi

Rule 22 of the Consolidated Rules contains a clear drafting mistake by omitting wording necessary to identify which pension increase rate applies to which benefits. The court is satisfied, based on the admissible background and the nature of the omission, that the rule should be construed as if the omitted wording from the Original Rules is included. This construction is necessary to make the rule workable and does not improperly extend the principles of correction by construction. The trustee is authorised to administer the Plan on this basis under section 48 of the Administration of Justice Act 1985.

Court Disposition

Application granted

Orders

  • Trustee authorised to administer the BCA Pension Plan on the basis that Rule 22 of the Consolidated Rules is to be construed as if the omitted wording from the Original Rules is included, specifying which pension increase rates apply to which benefits.
  • Trustee to notify members of the Plan of the order and the reasons for it in the next scheduled communication, with approved wording and access to the judgment and order.