Dresdner Kleinwort Ltd & Anor v Attrill & Ors

Dresdner Kleinwort Ltd & Anor v Attrill & Ors

The Court held that the announcement of 18 August 2008, together with subsequent communications, constituted a binding contractual variation under clause 1.4 of the employment contract, or alternatively, a binding contractual promise. The introduction of the MAC clause was a breach of the implied duty of mutual trust and confidence, as it was introduced to enable the employer to renege on the bonus pool promise for reasons unrelated to the financial performance of the business. The appeal was dismissed.

Parties
Appellant: Dresdner Kleinwort Limited; Appellant: Commerzbank AG; First Respondent: Richard Attrill & Others; Second Respondent: Fahmi Anar & Others
Jurisdiction
England and Wales
Judgment Date
26 April 2013
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Employment Contracts, Discretionary Bonuses, Variation of Contract, Implied Terms, Mutual Trust and Confidence
Employment Law Contract Law Employment Contracts Discretionary Bonuses Variation of Contract Implied Terms Mutual Trust and Confidence

Case Brief

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Parties

Dresdner Kleinwort Limited

Appellant

Commerzbank AG

Appellant

Richard Attrill & Others

First Respondent

Fahmi Anar & Others

Second Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the announcement of 18 August 2008 created a binding obligation to pay the claimants the sums claimed
  2. 2 Whether the introduction of the MAC clause on 19 December 2008 was a breach of the implied duty of mutual trust and confidence
  3. 3 Whether, if the MAC clause was lawfully introduced, it was properly construed and applied by the Bank

Ratio Decidendi

The Court held that the announcement of 18 August 2008, together with subsequent communications, constituted a binding contractual variation under clause 1.4 of the employment contract, or alternatively, a binding contractual promise. The introduction of the MAC clause was a breach of the implied duty of mutual trust and confidence, as it was introduced to enable the employer to renege on the bonus pool promise for reasons unrelated to the financial performance of the business. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the judgment of the High Court is upheld.