Airways Pension Scheme Trustee Ltd v Fielder & Anor [2019] EWHC 3032 (Ch) (11 November 2019)

Airways Pension Scheme Trustee Ltd v Fielder & Anor [2019] EWHC 3032 (Ch) (11 November 2019)

The correct test for court approval of the Trustee's decision to enter into the settlement agreement is the rationality test from Public Trustee v Cooper: whether the decision is one a reasonable body of trustees could reach. A prior Beddoes order authorising litigation does not require the court to apply a different or more stringent test when subsequently asked to approve a settlement.

Citation
[2019] EWHC 3032 (Ch)
Parties
Claimant: Airways Pension Scheme Trustee Limited; First Defendant: Mark Owen Fielder; Second Defendant: British Airways plc
Jurisdiction
England and Wales
Judgment Date
11 November 2019
Procedural Posture
Trustee Application for Court Approval of Settlement / Judgment on Applicable Legal Test for Approval
Outcome
Application granted; rationality test applies.
Legal Topics
Court Approval of Trustee Decisions, Rationality Test for Trustees, Beddoes Applications, Settlement of Litigation, Trustee Powers
Trusts Pensions Litigation Procedure Court Approval of Trustee Decisions Rationality Test for Trustees Beddoes Applications Settlement of Litigation Trustee Powers

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Parties

Airways Pension Scheme Trustee Limited

Claimant

Mark Owen Fielder

First Defendant

British Airways plc

Second Defendant

Procedural Posture

Trustee Application for Court Approval of Settlement / Judgment on Applicable Legal Test for Approval

Legal Issues

  1. 1 What is the correct legal test for court approval of a trustee's decision to enter into a settlement agreement after a prior Beddoes order?
  2. 2 Does a prior Beddoes order require the court to apply a different or more stringent test than rationality when approving a settlement?

Ratio Decidendi

The correct test for court approval of the Trustee's decision to enter into the settlement agreement is the rationality test from Public Trustee v Cooper: whether the decision is one a reasonable body of trustees could reach. A prior Beddoes order authorising litigation does not require the court to apply a different or more stringent test when subsequently asked to approve a settlement.

Court Disposition

Application granted; rationality test applies.

Orders

  • Court approves the Trustee's decision to enter into the settlement agreement with British Airways plc.