Univar UK Ltd v Smith & Ors

Univar UK Ltd v Smith & Ors

The 2008 DDR did not reflect the true intention of the Company and Trustees, which was to consolidate existing benefits and statutory requirements, not to hardwire RPI-based increases or annual revaluation. The drafting error arose from the use of precedent documents and was not intended. There was no contractual or equitable right to RPI-based revaluation conferred on Opt-Out Members by the opt-out process or associated documents, nor was there a valid exercise of a power to that effect. The Berk/PLAS Announcements did not confer a freestanding right to RPI-based increases; they were descriptive and subject to the main scheme rules. Rectification is granted to reflect the parties' true...

Parties
Claimant: Univar UK Limited; Defendant/trustee: Stephen Brian Smith; Defendant/trustee: Robert Joseph Geary; Defendant/trustee: Mark Mongan; Defendant/trustee: Anthony Edward Corrigan; Defendant/trustee: Brian Douglas Morgan; Defendant/trustee: Daniel Mulchinock; Defendant/trustee: Paul Leighton; Seventh Defendant/representative Beneficiary: Phil Shimells
Jurisdiction
England and Wales
Judgment Date
19 June 2020
Procedural Posture
Civil (pensions/trusts) / Judgment After Trial
Outcome
Rectification granted; claim for rectification of the 2008 DDR succeeds. Counterclaims and defences based on contract, estoppel, or exercise of power by Opt-Out Members and Berk/PLAS Members dismissed.
Legal Topics
Rectification of Trust Deeds, Pension Scheme Rules, Estoppel, Interpretation of Pension Scheme Documents
Trusts Pensions Equity Rectification of Trust Deeds Pension Scheme Rules Estoppel Interpretation of Pension Scheme Documents

Case Brief

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Parties

Univar UK Limited

Claimant

Stephen Brian Smith

Defendant/trustee

Robert Joseph Geary

Defendant/trustee

Mark Mongan

Defendant/trustee

Anthony Edward Corrigan

Defendant/trustee

Brian Douglas Morgan

Defendant/trustee

Daniel Mulchinock

Defendant/trustee

Paul Leighton

Defendant/trustee

Phil Shimells

Seventh Defendant/representative Beneficiary

Procedural Posture

Civil (pensions/trusts) / Judgment After Trial

Legal Issues

  1. 1 Whether the 2008 Definitive Deed and Rules (DDR) should be rectified to reflect the parties' true intention regarding pension increases and revaluation.
  2. 2 Whether the Opt-Out Members acquired contractual or equitable rights to RPI-based revaluation/increases by virtue of the 2010 opt-out process.
  3. 3 Whether the Berk/PLAS Announcements conferred a freestanding right to RPI-based increases for certain members.

Ratio Decidendi

The 2008 DDR did not reflect the true intention of the Company and Trustees, which was to consolidate existing benefits and statutory requirements, not to hardwire RPI-based increases or annual revaluation. The drafting error arose from the use of precedent documents and was not intended. There was no contractual or equitable right to RPI-based revaluation conferred on Opt-Out Members by the opt-out process or associated documents, nor was there a valid exercise of a power to that effect. The Berk/PLAS Announcements did not confer a freestanding right to RPI-based increases; they were descriptive and subject to the main scheme rules. Rectification is granted to reflect the parties' true...

Court Disposition

Rectification granted; claim for rectification of the 2008 DDR succeeds. Counterclaims and defences based on contract, estoppel, or exercise of power by Opt-Out Members and Berk/PLAS Members dismissed.

Orders

  • Rectification of the 2008 DDR to delete the hardwired RPI-based pension increase and annual revaluation provisions and substitute references to statutory requirements as intended.
  • Declaration that Opt-Out Members and Berk/PLAS Members have no freestanding contractual or equitable right to RPI-based revaluation or increases.