Forbes Trustee Services Ltd & Anor v Jackson & Ors

Forbes Trustee Services Ltd & Anor v Jackson & Ors

The Trustees are entitled, on proper consideration of the relevant material, to decide not to support the Plan and to seek recovery outside it; this is a reasonable exercise of their discretion.

Parties
Claimant: Alexander Forbes Trustee Services Limited; Claimant: T&N Pensions Trustee Limited; Defendant: Joanne Jackson; Defendant: Owen Oliver; Defendant: T&N Limited (in administration)
Jurisdiction
England and Wales
Judgment Date
02 November 2004
Procedural Posture
Application for Directions / Judgment
Outcome
Trustees permitted not to accept or support the Plan; wide discretion granted as to manner of implementation.
Legal Topics
Trustee Discretion, Scheme of Arrangement, Compromise of Statutory Liabilities, Priority of Creditors, Funding Deficit, Chapter 11 Bankruptcy
Pensions Insolvency Trusts Trustee Discretion Scheme of Arrangement Compromise of Statutory Liabilities Priority of Creditors Funding Deficit +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 2 Authorities cited 8 Party arguments 2 Amounts and remedies 36
Sign in to unlock

Parties

Alexander Forbes Trustee Services Limited

Claimant

T&N Pensions Trustee Limited

Claimant

Joanne Jackson

Defendant

Owen Oliver

Defendant

T&N Limited (in administration)

Defendant

Procedural Posture

Application for Directions / Judgment

Legal Issues

  1. 1 Whether trustees should be permitted to vote for or against the Plan for rearrangement of assets and liabilities of Federal Mogul Group
  2. 2 Whether trustees can properly exercise discretion not to support the Plan
  3. 3 Whether statutory obligations under Pensions Act 1995 can be compromised in advance

Ratio Decidendi

The Trustees are entitled, on proper consideration of the relevant material, to decide not to support the Plan and to seek recovery outside it; this is a reasonable exercise of their discretion.

Court Disposition

Trustees permitted not to accept or support the Plan; wide discretion granted as to manner of implementation.

Orders

  • Trustees are permitted not to accept or support the Plan.
  • Trustees granted wide discretion as to the manner in which they give effect to this direction.