HR Trustees Ltd v German & Anor

HR Trustees Ltd v German & Anor

The court held that the principles in McDonald v Horn and the approach of Rimer and Carnwath JJ in National Grid allow for a prospective costs order in pension fund litigation where the representative beneficiary acts for the benefit of the fund as a whole. The discretion is not limited to cases where only an indemnity order could be made, nor to cases where trustees are actively opposed. The justice of the case, the benefit to the majority of members, and the inability to secure alternative funding justified the order sought.

Parties
Claimant: 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
Civil / Ruling on Application for Prospective Costs Order in Respect of Cross Appeal
Outcome
Application granted
Legal Topics
Prospective Costs Orders, Pension Fund Litigation, Trustee Representation, Appeals, Costs in Trust Litigation
Trusts Pensions Civil Procedure Prospective Costs Orders Pension Fund Litigation Trustee Representation Appeals Costs in Trust Litigation

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Parties

HR Trustees Limited

Claimant

Peter German

First Defendant

International Management Group (UK) Ltd

Second Defendant

Procedural Posture

Civil / Ruling on 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 pursuing a cross-appeal in pension fund litigation
  2. 2 What principles govern the exercise of discretion for prospective costs orders in appeals involving pension funds

Ratio Decidendi

The court held that the principles in McDonald v Horn and the approach of Rimer and Carnwath JJ in National Grid allow for a prospective costs order in pension fund litigation where the representative beneficiary acts for the benefit of the fund as a whole. The discretion is not limited to cases where only an indemnity order could be made, nor to cases where trustees are actively opposed. The justice of the case, the benefit to the majority of members, and the inability to secure alternative funding justified the order sought.

Court Disposition

Application granted

Orders

  • Prospective costs order made in favour of Mr German: IMG to pay Mr German’s costs of the cross-appeal on the indemnity basis, and Mr German not to pay IMG’s costs of the cross-appeal regardless of outcome