IBM United Kingdom Holdings Ltd & Anor v Dalgleish & Ors [2017] EWCA Civ 1212 (03 August 2017)

IBM United Kingdom Holdings Ltd & Anor v Dalgleish & Ors [2017] EWCA Civ 1212 (03 August 2017)

The Court of Appeal held that IBM did not breach the Imperial duty or the implied contractual duty of trust and confidence in implementing Project Waltz. The Court found that while IBM had engendered reasonable expectations among employees, the changes were justified by significant business and financial circumstances, and the actions taken were not irrational, perverse, or for an improper purpose. The Court also held that the defective consultation process did not require further consultation before implementation. The appeal by IBM was allowed and the cross-appeal by the beneficiaries was dismissed.

Citation
[2017] EWCA Civ 1212
Parties
Claimant Appellant: IBM United Kingdom Holdings Ltd; Claimant Appellant: IBM United Kingdom Ltd; Defendant Respondent: Stuart Dalgleish; Defendant Respondent: Lizanne Harrison; Defendant Respondent: IBM United Kingdom Pensions Trust Ltd
Jurisdiction
England and Wales
Judgment Date
03 August 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)
Outcome
Appeal allowed; cross-appeal dismissed.
Legal Topics
Implied Contractual Duties, Employer Pension Scheme Discretions, Reasonable Expectations of Employees, Duty of Trust and Confidence, Imperial Duty, Consultation Requirements, Remedies for Breach of Pension Duties
Employment Law Pensions Law Contract Law Implied Contractual Duties Employer Pension Scheme Discretions Reasonable Expectations of Employees Duty of Trust and Confidence Imperial Duty +2 more

Case Brief

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Parties

IBM United Kingdom Holdings Ltd

Claimant Appellant

IBM United Kingdom Ltd

Claimant Appellant

Stuart Dalgleish

Defendant Respondent

Lizanne Harrison

Defendant Respondent

IBM United Kingdom Pensions Trust Ltd

Defendant Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)

Legal Issues

  1. 1 Whether IBM breached the Imperial duty and/or the implied contractual duty of trust and confidence in implementing Project Waltz
  2. 2 Whether the Exclusion Power was exercised for a proper purpose
  3. 3 Whether IBM's actions in relation to early retirement and non-pensionability agreements were lawful

Ratio Decidendi

The Court of Appeal held that IBM did not breach the Imperial duty or the implied contractual duty of trust and confidence in implementing Project Waltz. The Court found that while IBM had engendered reasonable expectations among employees, the changes were justified by significant business and financial circumstances, and the actions taken were not irrational, perverse, or for an improper purpose. The Court also held that the defective consultation process did not require further consultation before implementation. The appeal by IBM was allowed and the cross-appeal by the beneficiaries was dismissed.

Court Disposition

Appeal allowed; cross-appeal dismissed.

Orders

  • IBM's appeal allowed; orders of the High Court set aside to the extent appealed.
  • Cross-appeal by beneficiaries dismissed.