Kemp v Sims & Anor [2008] EWHC 2579 (Ch) (22 July 2008)

Kemp v Sims & Anor [2008] EWHC 2579 (Ch) (22 July 2008)

The demutualization compensation belonged to the trustees, not the employer; Mr Kemp's diversion of the funds to Royston was a breach of trust not authorised by the scheme rules or law, and he was not entitled to relief under section 61 as he did not act reasonably.

Citation
[2008] EWHC 2579 (Ch)
Parties
Appellant: Michael Kemp; Respondents: Sims & Another
Jurisdiction
England and Wales
Judgment Date
22 July 2008
Procedural Posture
Appeal on Point of Law From Pensions Ombudsman Determination / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Breach of Trust, Pension Scheme Governance, Jurisdiction of Pensions Ombudsman, Ownership of Demutualization Compensation

Case Brief

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Parties

Michael Kemp

Appellant

Sims & Another

Respondents

Procedural Posture

Appeal on Point of Law From Pensions Ombudsman Determination / Judgment on Appeal

  1. 1 Whether the diversion of demutualization compensation to the employer was a breach of trust
  2. 2 Whether the demutualization monies belonged to the trustees or the employer
  3. 3 Whether the Pensions Ombudsman had jurisdiction

Ratio Decidendi

The demutualization compensation belonged to the trustees, not the employer; Mr Kemp's diversion of the funds to Royston was a breach of trust not authorised by the scheme rules or law, and he was not entitled to relief under section 61 as he did not act reasonably.

Court Disposition

Appeal dismissed

Orders

  • Mr Kemp to pay £86,818 plus interest from 29 August 2000 until payment to the scheme trustees