BGC Capital Markets (Switzerland) LLC v Rees & Ors [2011] EWHC 2009 (QB) (27 July 2011)

BGC Capital Markets (Switzerland) LLC v Rees & Ors [2011] EWHC 2009 (QB) (27 July 2011)

Mr Rees was not entitled to terminate his contract for good cause under Swiss law because BGC's salary reduction, though substantial, did not reduce his remuneration below an appropriate level for his position and was carried out in good faith and in accordance with the contract. No binding contractual promise was made regarding the UBS line. BGC was entitled to reduce the salary and Mr Rees was not constructively dismissed. Mr Rees was in breach of contract by resigning early and is liable to repay the forgivable loan. There was no actionable inducement of breach of contract by Tullett, and no misuse of confidential information or breach of post-termination restrictions was established.

Citation
[2011] EWHC 2009
Parties
Claimant: BGC Capital Markets (Switzerland) LLC; 1st Defendant: Peter Kevin Rees; 2nd Defendant: Tullett Prebon PLC; 3rd Defendant: Tullett Prebon Group Ltd; 4th Defendant: Tullett Prebon (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
27 July 2011
Procedural Posture
High Court Civil Claim / Final Judgment After Trial
Outcome
Claim against Mr Rees succeeds in part; claim against Tullett dismissed; counterclaim by Mr Rees dismissed.
Legal Topics
Constructive Dismissal, Breach of Contract, Inducement of Breach of Contract, Restrictive Covenants, Misuse of Confidential Information, Remuneration and Salary Reduction, Forgivable Loan Recovery
Employment Law Contract Law Tort Law Constructive Dismissal Breach of Contract Inducement of Breach of Contract Restrictive Covenants Misuse of Confidential Information +2 more

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Parties

BGC Capital Markets (Switzerland) LLC

Claimant

Peter Kevin Rees

1st Defendant

Tullett Prebon PLC

2nd Defendant

Tullett Prebon Group Ltd

3rd Defendant

Tullett Prebon (UK) Ltd

4th Defendant

Procedural Posture

High Court Civil Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether Mr Rees was entitled to terminate his employment contract for good cause under Swiss law
  2. 2 Whether BGC lawfully reduced Mr Rees' salary under the contract and Swiss law
  3. 3 Whether Mr Rees was liable for breach of contract and repayment of the forgivable loan

Ratio Decidendi

Mr Rees was not entitled to terminate his contract for good cause under Swiss law because BGC's salary reduction, though substantial, did not reduce his remuneration below an appropriate level for his position and was carried out in good faith and in accordance with the contract. No binding contractual promise was made regarding the UBS line. BGC was entitled to reduce the salary and Mr Rees was not constructively dismissed. Mr Rees was in breach of contract by resigning early and is liable to repay the forgivable loan. There was no actionable inducement of breach of contract by Tullett, and no misuse of confidential information or breach of post-termination restrictions was established.

Court Disposition

Claim against Mr Rees succeeds in part; claim against Tullett dismissed; counterclaim by Mr Rees dismissed.

Orders

  • Mr Rees to pay BGC the sum of £144,525 in respect of the forgivable loan.
  • All other claims and counterclaims dismissed.