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 justified in terminating his contract as BGC was contractually entitled to reduce his salary and the reduced salary did not fall below 'appropriate remuneration' under Swiss law. No binding contractual promise regarding the UBS Zurich line was established. BGC did not breach the contract in a manner justifying summary termination. Tullett did not induce Mr Rees to breach his contract. BGC is entitled to repayment of the forgivable loan but not to damages for loss of profits or for breach of post-termination restrictions. Mr Rees' counterclaim for constructive dismissal fails.

Citation
[2011] EWHC 2009 (QB)
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 (queen's Bench Division) / Judgment After Trial
Outcome
Claim for damages for breach of contract and post-termination restrictions dismissed; claim for repayment of forgivable loan succeeds; counterclaim for constructive dismissal dismissed.
Legal Topics
Constructive Dismissal, Breach of Contract, Inducement of Breach of Contract, Restrictive Covenants, Misuse of Confidential Information, Swiss Law Employment Contracts
Employment Law Contract Law Tort Law Constructive Dismissal Breach of Contract Inducement of Breach of Contract Restrictive Covenants Misuse of Confidential Information +1 more

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 4 Authorities cited 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

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 (queen's Bench Division) / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Rees was justified in terminating his employment contract with BGC under Swiss law
  2. 2 Whether BGC was entitled to reduce Mr Rees' salary under the contract and Swiss law
  3. 3 Whether the reduced salary constituted 'appropriate remuneration' under Swiss law

Ratio Decidendi

Mr Rees was not justified in terminating his contract as BGC was contractually entitled to reduce his salary and the reduced salary did not fall below 'appropriate remuneration' under Swiss law. No binding contractual promise regarding the UBS Zurich line was established. BGC did not breach the contract in a manner justifying summary termination. Tullett did not induce Mr Rees to breach his contract. BGC is entitled to repayment of the forgivable loan but not to damages for loss of profits or for breach of post-termination restrictions. Mr Rees' counterclaim for constructive dismissal fails.

Court Disposition

Claim for damages for breach of contract and post-termination restrictions dismissed; claim for repayment of forgivable loan succeeds; counterclaim for constructive dismissal dismissed.

Orders

  • Mr Rees to repay the net amount of the forgivable loan (£144,525) to BGC.
  • All other claims and counterclaims dismissed.