Stena Line Ltd v Merchant Navy Ratings Pension Fund Trustees Ltd & Anor

Stena Line Ltd v Merchant Navy Ratings Pension Fund Trustees Ltd & Anor

The Trustee retains the power under clause 30 of the Deed to amend the Scheme to impose deficit repair obligations on Specified Employers. The 2001 Deed and Rules did not permanently release Specified Employers from such obligations, nor did they irrevocably narrow the amendment power. No estoppel by convention arises on the facts to prevent the Trustee from exercising this power. Any future amendment to impose such obligations must be considered in light of consequential amendments to other Scheme rules, but there is no legal bar to such an amendment in principle.

Parties
Claimant: Stena Line Limited; First Defendant: Merchant Navy Ratings Pension Fund Trustees Limited; Second Defendant: P&O Ferries Limited
Jurisdiction
England and Wales
Judgment Date
27 July 2010
Procedural Posture
Civil (pensions/trusts) / Judgment
Outcome
Declaratory judgment for Claimant
Legal Topics
Interpretation of Pension Scheme Amendment Powers, Estoppel by Convention, Employer Contribution Obligations, Trustee Discretion, Statutory Funding Requirements
Trust Law Pensions Law Contract Law Interpretation of Pension Scheme Amendment Powers Estoppel by Convention Employer Contribution Obligations Trustee Discretion Statutory Funding Requirements

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Parties

Stena Line Limited

Claimant

Merchant Navy Ratings Pension Fund Trustees Limited

First Defendant

P&O Ferries Limited

Second Defendant

Procedural Posture

Civil (pensions/trusts) / Judgment

Legal Issues

  1. 1 Whether the Trustee retains power to amend the Scheme to impose deficit repair obligations on Specified Employers after the 2001 Deed and Rules
  2. 2 Whether the Specified Employers are permanently released from further contractual liability for deficit repair
  3. 3 Whether estoppel by convention prevents the Trustee from imposing such obligations

Ratio Decidendi

The Trustee retains the power under clause 30 of the Deed to amend the Scheme to impose deficit repair obligations on Specified Employers. The 2001 Deed and Rules did not permanently release Specified Employers from such obligations, nor did they irrevocably narrow the amendment power. No estoppel by convention arises on the facts to prevent the Trustee from exercising this power. Any future amendment to impose such obligations must be considered in light of consequential amendments to other Scheme rules, but there is no legal bar to such an amendment in principle.

Court Disposition

Declaratory judgment for Claimant

Orders

  • Declaration that the Trustee retains power under clause 30 to amend the Scheme to impose deficit repair obligations on Specified Employers.
  • Declaration that the Trustee is not estopped from exercising such power.