Avon Cosmetics Ltd v Dalriada Trustees Ltd & Ors [2024] EWHC 317 (Ch) (19 February 2024)

Avon Cosmetics Ltd v Dalriada Trustees Ltd & Ors [2024] EWHC 317 (Ch) (19 February 2024)

The compromise is approved as it is for the benefit of all represented persons, strikes a fair balance between the competing arguments and litigation risks, and brings certainty, cost savings, and clarity to the administration of the Plan. The representation orders are appropriate and the compromise terms are actuarially feasible and legally permissible.

Citation
[2024] EWHC 317 (Ch)
Parties
Claimant: Avon Cosmetics Limited; First Defendant: Dalriada Trustees Limited; Second Defendant: Michelle Parczuk; Third Defendant: Karol Lewandowski; Fourth Defendant: Anna Tolley; Fifth Defendant: Nereu Daltin Neto; Sixth Defendant: John Paul Watson; Seventh Defendant (representative Beneficiary): Richard Pinnock
Jurisdiction
England and Wales
Judgment Date
19 February 2024
Procedural Posture
Pension Scheme Amendment Dispute / Approval of Compromise Following Representation Orders
Outcome
Compromise approved; representation orders made
Legal Topics
Pension Scheme Amendments, Accrued Rights, Power of Amendment, Compromise Approval, Representative Proceedings, Section 91 Pensions Act 1995
Pensions Trusts Equity Pension Scheme Amendments Accrued Rights Power of Amendment Compromise Approval Representative Proceedings +1 more

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Parties

Avon Cosmetics Limited

Claimant

Dalriada Trustees Limited

First Defendant

Michelle Parczuk

Second Defendant

Karol Lewandowski

Third Defendant

Anna Tolley

Fourth Defendant

Nereu Daltin Neto

Fifth Defendant

John Paul Watson

Sixth Defendant

Richard Pinnock

Seventh Defendant (representative Beneficiary)

Procedural Posture

Pension Scheme Amendment Dispute / Approval of Compromise Following Representation Orders

Legal Issues

  1. 1 Whether the CARE Amendments to the Avon Cosmetics Pension Plan validly broke the final salary link for accrued rights of FS Winners in light of the Fetter in the trust deed
  2. 2 Whether the compromise between the parties should be approved under CPR r19.9 as being for the benefit of all represented persons

Ratio Decidendi

The compromise is approved as it is for the benefit of all represented persons, strikes a fair balance between the competing arguments and litigation risks, and brings certainty, cost savings, and clarity to the administration of the Plan. The representation orders are appropriate and the compromise terms are actuarially feasible and legally permissible.

Court Disposition

Compromise approved; representation orders made

Orders

  • Representation orders under CPR r19.9 appointing the Claimant and the Seventh Defendant as representatives for their respective classes
  • Approval of the compromise as set out in the schedule to the draft order, including specific terms for FS Winners, FS Transferees, FS Dependants, LAMs, and LAM Transferees