Airways Pension Scheme Trustee Ltd v Fielder & Anor

Airways Pension Scheme Trustee Ltd v Fielder & Anor

The correct test for court approval of the Trustee's decision to settle is the rationality test from Public Trustee v Cooper, even where a prior Beddoes order authorised litigation. The court does not substitute its own view for that of the Trustee but assesses whether the decision is one a reasonable body of trustees could make.

Parties
Claimant: Airways Pension Scheme Trustee Limited; First Defendant: Mark Owen Fielder; Second Defendant: British Airways PLC
Jurisdiction
England and Wales
Judgment Date
11 November 2019
Procedural Posture
Civil Trustee Application / Judgment on Application for Court Approval of Settlement Agreement
Outcome
Application granted
Legal Topics
Trustee Powers, Court Approval of Settlements, Beddoes Applications, Rationality Test, Settlement of Litigation
Trusts Pensions Civil Procedure Trustee Powers Court Approval of Settlements Beddoes Applications Rationality Test Settlement of Litigation

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Parties

Airways Pension Scheme Trustee Limited

Claimant

Mark Owen Fielder

First Defendant

British Airways PLC

Second Defendant

Procedural Posture

Civil Trustee Application / Judgment on Application for Court Approval of Settlement Agreement

Legal Issues

  1. 1 What is the correct test for court approval of a trustee's decision to settle ongoing litigation after a prior Beddoes order?
  2. 2 Does prior court authorisation to litigate require a different standard for approving settlement?

Ratio Decidendi

The correct test for court approval of the Trustee's decision to settle is the rationality test from Public Trustee v Cooper, even where a prior Beddoes order authorised litigation. The court does not substitute its own view for that of the Trustee but assesses whether the decision is one a reasonable body of trustees could make.

Court Disposition

Application granted

Orders

  • The Trustee's decision to enter into the settlement agreement is approved by the court.