Parties Named In Schedule A v Dresdner Kleinwort Ltd & Anor [2010] EWHC 1249 (QB) (28 May 2010)

Parties Named In Schedule A v Dresdner Kleinwort Ltd & Anor [2010] EWHC 1249 (QB) (28 May 2010)

The announcement of a minimum bonus pool and subsequent assurances did not create enforceable contractual rights due to lack of certainty, formality, and consideration. The 19 December letters were provisional and subject to a material adverse change clause, which was invoked following a substantial deterioration in financial performance. There are factual issues regarding the operation of the MAC clause that require investigation at trial, so summary judgment is not appropriate on those claims.

Citation
[2010] EWHC 1249 (QB)
Parties
Claimants: The Parties named in Schedule A; Claimants: Fahmi Anar and others; Defendant: Dresdner Kleinwort Limited; Defendant: Commerzbank AG
Jurisdiction
England and Wales
Judgment Date
28 May 2010
Procedural Posture
Summary Judgment Application / High Court (queen's Bench Division) Application for Summary Judgment Under CPR Part 24
Outcome
Summary judgment granted in part; claims based solely on the August announcement and subsequent statements dismissed. Claims based on the 19 December letters and operation of the MAC clause to proceed to trial.
Legal Topics
Discretionary Bonus, Employment Contract, Implied Terms, Estoppel, Summary Judgment, Trust and Confidence, Variation of Contract
Employment Law Contract Law Discretionary Bonus Employment Contract Implied Terms Estoppel Summary Judgment Trust and Confidence +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 23 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

The Parties named in Schedule A

Claimants

Fahmi Anar and others

Claimants

Dresdner Kleinwort Limited

Defendant

Commerzbank AG

Defendant

Procedural Posture

Summary Judgment Application / High Court (queen's Bench Division) Application for Summary Judgment Under CPR Part 24

Legal Issues

  1. 1 Whether the announcement of a minimum bonus pool and subsequent communications created a legally binding obligation to pay bonuses to claimants.
  2. 2 Whether the letters of 19 December 2008 constituted enforceable promises to pay bonuses, subject to the MAC clause.
  3. 3 Whether the Defendants' reduction of bonuses was a breach of contract or breach of implied terms of trust and confidence.

Ratio Decidendi

The announcement of a minimum bonus pool and subsequent assurances did not create enforceable contractual rights due to lack of certainty, formality, and consideration. The 19 December letters were provisional and subject to a material adverse change clause, which was invoked following a substantial deterioration in financial performance. There are factual issues regarding the operation of the MAC clause that require investigation at trial, so summary judgment is not appropriate on those claims.

Court Disposition

Summary judgment granted in part; claims based solely on the August announcement and subsequent statements dismissed. Claims based on the 19 December letters and operation of the MAC clause to proceed to trial.

Orders

  • Claims based solely on the August announcement and subsequent statements dismissed.
  • Claims based on the 19 December letters and the MAC clause to proceed to trial.