IBM United Kingdom Holdings Ltd & Anor v Dalgleish & Ors (Rev 2)

IBM United Kingdom Holdings Ltd & Anor v Dalgleish & Ors (Rev 2)

IBM breached its contractual duty of trust and confidence and the Imperial duty by procuring NPAs and serving Exclusion Notices as part of Project Waltz, thereby disappointing members' reasonable expectations regarding pensionable salary increases and early retirement policy. The NPAs were not themselves contracts but, when implemented, the non-pensionability term was incorporated into employment contracts in breach of duty. The Exclusion Notices were voidable, not void, and could be set aside at the election of affected members. Members are entitled to have salary increases treated as pensionable (subject to prior partial NPAs), to damages or equitable compensation for proven loss, and...

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
20 February 2015
Procedural Posture
Civil (pensions/employment/trusts) / Remedies Judgment Following Main Liability Judgment
Outcome
Declarations granted; Exclusion Notices voidable and set aside at member election; salary increases pensionable; damages and equitable compensation available in principle; waivers under redundancy programmes effective to bar certain claims; further consultation required before future exclusions; Trustee to...
Legal Topics
Implied Contractual Duty of Trust and Confidence, Imperial Duty (pensions Context), Breach of Duty by Employer, Remedies for Breach of Trust and Contract, Validity and Enforceability of Non Pensionability Agreements (npas), Void/voidable/unenforceable Contracts, Exclusion Notices Under Pension Schemes, Early Retirement Policy and Reasonable Expectations, Consultation Obligations Under Pension Law, Severance and Partial Rescission, Equitable Compensation, Damages for Breach of Contract
Employment Law Pensions Law Equity and Trusts Contract Law Implied Contractual Duty of Trust and Confidence Imperial Duty (pensions Context) Breach of Duty by Employer Remedies for Breach of Trust and Contract +8 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 6 Authorities cited 33 Party arguments 2 Amounts and remedies 1
Sign in to unlock

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

Civil (pensions/employment/trusts) / Remedies Judgment Following Main Liability Judgment

Legal Issues

  1. 1 Whether the 2009, 2010, and 2011 Non-Pensionability Agreements (NPAs) were void, voidable, unenforceable, or valid;
  2. 2 Whether IBM breached its contractual and/or Imperial duty in procuring NPAs and serving Exclusion Notices;
  3. 3 Whether salary increases awarded under NPAs are pensionable;

Ratio Decidendi

IBM breached its contractual duty of trust and confidence and the Imperial duty by procuring NPAs and serving Exclusion Notices as part of Project Waltz, thereby disappointing members' reasonable expectations regarding pensionable salary increases and early retirement policy. The NPAs were not themselves contracts but, when implemented, the non-pensionability term was incorporated into employment contracts in breach of duty. The Exclusion Notices were voidable, not void, and could be set aside at the election of affected members. Members are entitled to have salary increases treated as pensionable (subject to prior partial NPAs), to damages or equitable compensation for proven loss, and...

Court Disposition

Declarations granted; Exclusion Notices voidable and set aside at member election; salary increases pensionable; damages and equitable compensation available in principle; waivers under redundancy programmes effective to bar certain claims; further consultation required before future exclusions; Trustee to...

Orders

  • Exclusion Notices declared voidable and set aside at election of affected members;
  • Trustee to administer DB Plans as if affected members remained in pensionable service unless and until valid exclusion;