Kemp v Sims & Anor

Kemp v Sims & Anor

The demutualization monies belonged to the trustees, not Royston, and Mr Kemp's diversion of those funds to Royston constituted a breach of trust not excused by section 61, as his conduct was unreasonable given his legal expertise and the guidance provided by Scottish Widows.

Parties
Appellant: Michael Kemp; Respondent: Sims & Another
Jurisdiction
England and Wales
Judgment Date
22 July 2008
Procedural Posture
Appeal / Judgment
Outcome
appeal dismissed
Legal Topics
Breach of Trust, Jurisdiction of Pensions Ombudsman, Ownership of Pension Scheme Assets, Relief Under Trustee Act Section 61
Trust Law Pensions Law Breach of Trust Jurisdiction of Pensions Ombudsman Ownership of Pension Scheme Assets Relief Under Trustee Act Section 61

Case Brief

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Parties

Michael Kemp

Appellant

Sims & Another

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

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

Ratio Decidendi

The demutualization monies belonged to the trustees, not Royston, and Mr Kemp's diversion of those funds to Royston constituted a breach of trust not excused by section 61, as his conduct was unreasonable given his legal expertise and the guidance provided by Scottish Widows.

Court Disposition

appeal dismissed

Orders

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