Avon Cosmetics Limited v Dalriada Trustees Limited & Ors

Avon Cosmetics Limited v Dalriada Trustees Limited & Ors

Assuming the CARE Amendments are invalid as regards FS Winners due to the fetter, they remain valid as regards Revaluation Winners. The categories are conceptually separable, and the substantial purpose and effect of the amendments are not changed by excluding FS Winners. The court applies an objective test and does not inquire into the subjective intention of the trustees. There is no breach of fiduciary duty or improper purpose on the facts.

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: Richard Pinnock
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Pensions/trusts Representative Action / Judgment on Validity of Pension Scheme Amendments and Representation Orders
Outcome
CARE Amendments valid as regards Revaluation Winners; representation orders granted.
Legal Topics
Power of Amendment, Severance, Excessive Exercise of Power, Fiduciary Duties, Proper Purposes Doctrine, Representative Proceedings
Trust Law Pensions Law Power of Amendment Severance Excessive Exercise of Power Fiduciary Duties Proper Purposes Doctrine Representative Proceedings

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 19 Party arguments 2 Amounts and remedies 4
Sign in to unlock

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

Procedural Posture

Pensions/trusts Representative Action / Judgment on Validity of Pension Scheme Amendments and Representation Orders

Legal Issues

  1. 1 Whether the CARE Amendments to the Avon Cosmetics Pension Plan are valid as regards Revaluation Winners if invalid as regards FS Winners due to a fetter in the power of amendment
  2. 2 Whether the exercise of the power of amendment can be severed so as to be valid in part
  3. 3 Whether the court must consider the subjective intention of the trustees when determining severance or validity of amendments

Ratio Decidendi

Assuming the CARE Amendments are invalid as regards FS Winners due to the fetter, they remain valid as regards Revaluation Winners. The categories are conceptually separable, and the substantial purpose and effect of the amendments are not changed by excluding FS Winners. The court applies an objective test and does not inquire into the subjective intention of the trustees. There is no breach of fiduciary duty or improper purpose on the facts.

Court Disposition

CARE Amendments valid as regards Revaluation Winners; representation orders granted.

Orders

  • Representation order appointing Claimant as representative of Revaluation Winners.
  • Representation order appointing Seventh Defendant as representative of FS Winners.