Simpkin v The Berkeley Group Holdings Plc [2016] EWHC 1619 (QB) (24 June 2016)

Simpkin v The Berkeley Group Holdings Plc [2016] EWHC 1619 (QB) (24 June 2016)

The court held that a preliminary trial limited to the lawfulness of the exercise of discretion, based on the minutes of the relevant meetings, is appropriate and proportionate. The trial judge will determine whether the decision not to treat the claimant as a good leaver was unlawful, without a full inquiry into all factual allegations at this stage. Costs budgeting should be ordered to protect the claimant and promote proportionality.

Citation
[2016] EWHC 1619 (QB)
Parties
Claimant/applicant: Nicolas Guy Simpkin; Defendant/respondent: The Berkeley Group Holdings PLC
Jurisdiction
England and Wales
Judgment Date
24 June 2016
Procedural Posture
High Court Civil Claim (queen's Bench Division) / Interlocutory Application—case Management Directions and Costs Budgeting
Outcome
Applications granted in principle: preliminary issue/split trial ordered on the lawfulness of the discretion exercised; costs budgeting ordered.
Legal Topics
Exercise of Contractual Discretion, Implied Terms in Employment Contracts, Good Leaver/bad Leaver Status, Costs Budgeting, Case Management, Remuneration and Bonus Schemes
Employment Law Contract Law Civil Procedure Exercise of Contractual Discretion Implied Terms in Employment Contracts Good Leaver/bad Leaver Status Costs Budgeting Case Management +1 more

Case Brief

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Parties

Nicolas Guy Simpkin

Claimant/applicant

The Berkeley Group Holdings PLC

Defendant/respondent

Procedural Posture

High Court Civil Claim (queen's Bench Division) / Interlocutory Application—case Management Directions and Costs Budgeting

Legal Issues

  1. 1 Whether the defendant's exercise of discretion in denying 'good leaver' status was unlawful or in breach of contract
  2. 2 Whether the court should order a preliminary issue/split trial limited to the lawfulness of the discretion exercised
  3. 3 Whether costs budgeting should be ordered

Ratio Decidendi

The court held that a preliminary trial limited to the lawfulness of the exercise of discretion, based on the minutes of the relevant meetings, is appropriate and proportionate. The trial judge will determine whether the decision not to treat the claimant as a good leaver was unlawful, without a full inquiry into all factual allegations at this stage. Costs budgeting should be ordered to protect the claimant and promote proportionality.

Court Disposition

Applications granted in principle: preliminary issue/split trial ordered on the lawfulness of the discretion exercised; costs budgeting ordered.

Orders

  • Parties to attempt to agree the mechanics and scope of the preliminary trial based on the minutes of the meetings.
  • Costs budgeting to be conducted by a judge with assistance from a Queen's Bench Master.