Keen v Commerzbank Ag [2006] EWHC 785 (Comm) (07 April 2006)

Keen v Commerzbank Ag [2006] EWHC 785 (Comm) (07 April 2006)

The Bank has not demonstrated that the Claimant's claims for bonus for 2003, 2004, and 2005 have no real prospect of success. There are triable issues regarding the rationality of the Bank's exercise of discretion and the enforceability of the contractual clause under the Unfair Contract Terms Act 1977. The application for summary judgment is dismissed and the matter should proceed to trial.

Citation
[2006] EWHC 785 (Comm)
Parties
Claimant: James Keen; Defendant: Commerzbank AG
Jurisdiction
England and Wales
Judgment Date
07 April 2006
Procedural Posture
Summary Judgment Application (cpr Part 24) / Interlocutory (application for Summary Judgment)
Outcome
Application for summary judgment dismissed
Legal Topics
Bonus Entitlement, Exercise of Contractual Discretion, Implied Terms in Employment Contracts, Unfair Contract Terms Act 1977, Summary Judgment Procedure
Employment Law Contract Law Bonus Entitlement Exercise of Contractual Discretion Implied Terms in Employment Contracts Unfair Contract Terms Act 1977 Summary Judgment Procedure

Case Brief

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Parties

James Keen

Claimant

Commerzbank AG

Defendant

Procedural Posture

Summary Judgment Application (cpr Part 24) / Interlocutory (application for Summary Judgment)

Legal Issues

  1. 1 Whether the Bank exercised its discretion over bonus awards irrationally or perversely for 2003, 2004, and 2005
  2. 2 Whether the contractual clause excluding bonus for employees not employed at payment date is enforceable or void under the Unfair Contract Terms Act 1977
  3. 3 Whether the Bank's decision-making process for bonuses was sufficiently transparent and rational

Ratio Decidendi

The Bank has not demonstrated that the Claimant's claims for bonus for 2003, 2004, and 2005 have no real prospect of success. There are triable issues regarding the rationality of the Bank's exercise of discretion and the enforceability of the contractual clause under the Unfair Contract Terms Act 1977. The application for summary judgment is dismissed and the matter should proceed to trial.

Court Disposition

Application for summary judgment dismissed

Orders

  • Matter to proceed to trial on all issues
  • Parties to be heard on the form of order and directions for trial