IBM United Kingdom Holdings Ltd & Anor v Dalgleish & Ors [2015] EWHC 1385 (Ch) (18 May 2015)

IBM United Kingdom Holdings Ltd & Anor v Dalgleish & Ors [2015] EWHC 1385 (Ch) (18 May 2015)

The court held that the breaches of duty previously attributed to IBM United Kingdom Holdings Limited as breaches of employment contract should be attributed to IBM United Kingdom Limited, the actual employer. Holdings' breaches of its Imperial duty in relation to certain pension changes did not give rise to contractual liability for UKL. The judgments were to be corrected accordingly, with UKL substituted for Holdings as the party contractually liable except in relation to specific elements where only Holdings was in breach of its Imperial duty.

Citation
[2015] EWHC 1385 (Ch)
Parties
Claimant: IBM United Kingdom Holdings Limited; Claimant: IBM United Kingdom Limited; Defendant: Stuart Dalgleish; Defendant: Lizanne Harrison; Defendant: IBM United Kingdom Pensions Trust Limited
Jurisdiction
England and Wales
Judgment Date
18 May 2015
Procedural Posture
Chancery Division Civil Claim / Post Judgment Clarification and Correction
Outcome
Judgments to be corrected to attribute contractual breaches to IBM United Kingdom Limited instead of Holdings, with specified exceptions; no further substantive amendments made at this stage.
Legal Topics
Breach of Contract, Implied Duty of Trust and Confidence, Pension Scheme Management, Remedies for Breach, Employer Identity, Consultation Obligations
Employment Law Pensions Law Contract Law Breach of Contract Implied Duty of Trust and Confidence Pension Scheme Management Remedies for Breach Employer Identity +1 more

Case Brief

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Parties

IBM United Kingdom Holdings Limited

Claimant

IBM United Kingdom Limited

Claimant

Stuart Dalgleish

Defendant

Lizanne Harrison

Defendant

IBM United Kingdom Pensions Trust Limited

Defendant

Procedural Posture

Chancery Division Civil Claim / Post Judgment Clarification and Correction

Legal Issues

  1. 1 Whether IBM United Kingdom Holdings Limited or IBM United Kingdom Limited was the correct party in breach of contract
  2. 2 Whether breaches of duty by Holdings in relation to pension changes gave rise to contractual liability for UKL
  3. 3 Whether the judgments should be corrected to reflect the true employer

Ratio Decidendi

The court held that the breaches of duty previously attributed to IBM United Kingdom Holdings Limited as breaches of employment contract should be attributed to IBM United Kingdom Limited, the actual employer. Holdings' breaches of its Imperial duty in relation to certain pension changes did not give rise to contractual liability for UKL. The judgments were to be corrected accordingly, with UKL substituted for Holdings as the party contractually liable except in relation to specific elements where only Holdings was in breach of its Imperial duty.

Court Disposition

Judgments to be corrected to attribute contractual breaches to IBM United Kingdom Limited instead of Holdings, with specified exceptions; no further substantive amendments made at this stage.

Orders

  • Substitute IBM United Kingdom Limited for Holdings as the party contractually liable for breaches of employment contract, except in relation to the Exclusion Notices, ER Window, and change in ER policy.
  • Clarify that Holdings' breaches of Imperial duty do not establish contractual liability for UKL.