Gruber & Ors v AIG Management France, SA & Ors

Gruber & Ors v AIG Management France, SA & Ors

The plans did not permit negative balances or carry-forward of losses; restoration of deducted amounts was mandatory and should have been planned for payment in 2013. AIG-FP breached its contractual obligations by failing to adopt a restoration plan. AIG Inc did not act with the requisite knowledge or intent to be liable under alter ego or tortious interference principles. Claimants are entitled to damages against AIG-FP for breach of contract regarding restoration, but not to debt claims or claims against AIG Inc or Banque AIG for 2008 opening balances or ERP credits.

Parties
Claimant: Tobias Gruber and 22 others; Defendant: Management France, S. A.; Defendant: AIG Financial Products Corp.; Defendant: American International Group, Inc.
Jurisdiction
England and Wales
Judgment Date
09 November 2018
Procedural Posture
Commercial / Final Judgment
Outcome
Claimants' contract claims against AIG-FP succeed in part; claims in debt and against Banque AIG and AIG Inc dismissed.
Legal Topics
Deferred Compensation, Bonus Plans, Corporate Veil, Tortious Interference, Restoration of Deductions, Employee Retention, Damages Assessment
Contract Law Employment Law Company Law Tort Law Deferred Compensation Bonus Plans Corporate Veil Tortious Interference +3 more

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Parties

Tobias Gruber and 22 others

Claimant

Management France, S. A.

Defendant

AIG Financial Products Corp.

Defendant

American International Group, Inc.

Defendant

Procedural Posture

Commercial / Final Judgment

Legal Issues

  1. 1 Whether losses under the plans properly reduced claimants' deferred bonus balances
  2. 2 Whether restoration of reduced balances was mandatory under the plans
  3. 3 Whether negative balances could be carried forward under the plans

Ratio Decidendi

The plans did not permit negative balances or carry-forward of losses; restoration of deducted amounts was mandatory and should have been planned for payment in 2013. AIG-FP breached its contractual obligations by failing to adopt a restoration plan. AIG Inc did not act with the requisite knowledge or intent to be liable under alter ego or tortious interference principles. Claimants are entitled to damages against AIG-FP for breach of contract regarding restoration, but not to debt claims or claims against AIG Inc or Banque AIG for 2008 opening balances or ERP credits.

Court Disposition

Claimants' contract claims against AIG-FP succeed in part; claims in debt and against Banque AIG and AIG Inc dismissed.

Orders

  • Judgment against AIG-FP for damages to be assessed for breach of restoration obligation under the plans.
  • Claims in debt for 2008 opening balances and ERP credits dismissed.