HR Trustees Ltd v German & Anor [2010] EWHC 321 (Ch) (26 February 2010)

HR Trustees Ltd v German & Anor [2010] EWHC 321 (Ch) (26 February 2010)

The court held that in pension fund litigation where a representative beneficiary acts for the benefit of the fund as a whole, the McDonald v Horn principle applies, giving the court discretion to make a prospective costs order even if the Buckton test is not satisfied. The facts showed Mr German represented the majority of members and the cross-appeal could benefit the fund as a whole. The justice of the case required the order to be made.

Citation
[2010] EWHC 321 (Ch)
Parties
Claimant: IMG Pension Plan HR Trustees Limited; First Defendant: Peter German; Second Defendant: International Management Group (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
26 February 2010
Procedural Posture
Chancery Division Trusts/pensions / Application for Prospective Costs Order in Respect of Cross Appeal
Outcome
Application granted
Legal Topics
Prospective Costs Orders, Pension Fund Litigation, Trust Litigation, Appeals, Representative Beneficiaries
Trusts Pensions Civil Procedure Prospective Costs Orders Pension Fund Litigation Trust Litigation Appeals Representative Beneficiaries

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Parties

IMG Pension Plan HR Trustees Limited

Claimant

Peter German

First Defendant

International Management Group (UK) Ltd

Second Defendant

Procedural Posture

Chancery Division Trusts/pensions / Application for Prospective Costs Order in Respect of Cross Appeal

Legal Issues

  1. 1 Whether a prospective costs order should be made in favour of a representative beneficiary (Mr German) for a cross-appeal in pension fund litigation, to be paid by the Principal Employer (IMG) regardless of outcome.

Ratio Decidendi

The court held that in pension fund litigation where a representative beneficiary acts for the benefit of the fund as a whole, the McDonald v Horn principle applies, giving the court discretion to make a prospective costs order even if the Buckton test is not satisfied. The facts showed Mr German represented the majority of members and the cross-appeal could benefit the fund as a whole. The justice of the case required the order to be made.

Court Disposition

Application granted

Orders

  • IMG to pay Mr German's costs of the cross-appeal on the indemnity basis, regardless of outcome.