BGC Capital Markets (Switzerland) LLC v Rees & Ors

BGC Capital Markets (Switzerland) LLC v Rees & Ors

Mr Rees was not justified in terminating his contract; BGC was entitled to reduce his salary and the reduced salary was 'appropriate remuneration' under Swiss law. BGC is entitled to recover the forgivable loan but failed to prove any recoverable loss of profits or damages for breach of restrictive covenants. Tullett did not induce breach of contract as any job offer was conditional on Mr Rees being free of obligations. No misuse of confidential information was established.

Parties
Claimant: BGC Capital Markets (Switzerland) LLC; 1st Defendant: Peter Kevin Rees; 2nd Defendant: Tullett Prebon PLC; 3rd Defendant: Tullett Prebon Group Ltd; 4th Defendant: Tullett Prebon (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
27 July 2011
Procedural Posture
Civil / Final Judgment
Outcome
Claim against Mr Rees for repayment of loan succeeds; all other claims against Mr Rees and Tullett fail.
Legal Topics
Wrongful Termination, Restrictive Covenants, Inducement of Breach of Contract, Misuse of Confidential Information, Damages, Swiss Law, English Law
Employment Contract Tort Wrongful Termination Restrictive Covenants Inducement of Breach of Contract Misuse of Confidential Information Damages +2 more

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Parties

BGC Capital Markets (Switzerland) LLC

Claimant

Peter Kevin Rees

1st Defendant

Tullett Prebon PLC

2nd Defendant

Tullett Prebon Group Ltd

3rd Defendant

Tullett Prebon (UK) Ltd

4th Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether Mr Rees was justified in terminating his employment contract under Swiss law
  2. 2 Whether BGC was entitled to reduce Mr Rees' salary under the contract
  3. 3 Whether the reduced salary constituted 'appropriate remuneration' under Swiss law

Ratio Decidendi

Mr Rees was not justified in terminating his contract; BGC was entitled to reduce his salary and the reduced salary was 'appropriate remuneration' under Swiss law. BGC is entitled to recover the forgivable loan but failed to prove any recoverable loss of profits or damages for breach of restrictive covenants. Tullett did not induce breach of contract as any job offer was conditional on Mr Rees being free of obligations. No misuse of confidential information was established.

Court Disposition

Claim against Mr Rees for repayment of loan succeeds; all other claims against Mr Rees and Tullett fail.

Orders

  • Mr Rees to repay the forgivable loan (£144,525) to BGC
  • No damages awarded for breach of restrictive covenants