Avon Cosmetics Limited v Dalriada Trustees Limited & Ors

Avon Cosmetics Limited v Dalriada Trustees Limited & Ors

The court approved the compromise as it struck a fair balance between the competing arguments, was for the benefit of all represented persons, avoided litigation and costs, provided certainty, and was actuarially feasible. The representation orders were appropriate as the classes had the same interest in the issues. The compromise terms, including the calculation of benefits and treatment of sub-categories, were reasonable and justified by the litigation risks and practical considerations.

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
03 August 2024
Procedural Posture
Civil Pensions/trusts / Judgment on Approval of Compromise and Representation Orders
Outcome
Compromise approved; representation orders granted
Legal Topics
Power of Amendment in Pension Schemes, Fetters on Amendment Powers, Compromise Approval Under CPR 19.9, Representative Proceedings, Calculation of Accrued Pension Rights
Pensions Trusts Civil Procedure Power of Amendment in Pension Schemes Fetters on Amendment Powers Compromise Approval Under CPR 19.9 Representative Proceedings Calculation of Accrued Pension Rights

Case Brief

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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

Civil Pensions/trusts / Judgment on Approval of Compromise and 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 certain members in light of the fetter in the trust deed
  2. 2 Whether the proposed compromise between the parties should be approved under CPR 19.9 as being for the benefit of all represented persons

Ratio Decidendi

The court approved the compromise as it struck a fair balance between the competing arguments, was for the benefit of all represented persons, avoided litigation and costs, provided certainty, and was actuarially feasible. The representation orders were appropriate as the classes had the same interest in the issues. The compromise terms, including the calculation of benefits and treatment of sub-categories, were reasonable and justified by the litigation risks and practical considerations.

Court Disposition

Compromise approved; representation orders granted

Orders

  • The compromise set out in the schedule to the draft order is approved under CPR 19.9.
  • Representation orders are made appointing the Claimant and the 7th Defendant as representatives for the relevant classes.