Irish Pensions Trust Ltd. v. Central Remedial Clinic & Ors [2005] IEHC 87 (18 March 2005)

Irish Pensions Trust Ltd. v. Central Remedial Clinic & Ors [2005] IEHC 87 (18 March 2005)

The omission of the CPI cap in the 1993 special rule was a mistake and does not reflect the common intention of the parties, as evidenced by explanatory booklets, funding arrangements, and consistent practice. The special rule should be rectified to include the CPI cap, ensuring escalation rights are applied at the CPI capped rate or 5% per annum compound if less.

Citation
[2005] IEHC 87
Parties
Plaintiff: Irish Pensions Trust Limited; Defendant: Central Remedial Clinic; Defendant: Richard Tierney; Defendant: Mercer Human Resource Consulting Limited
Jurisdiction
Ireland
Judgment Date
18 March 2005
Procedural Posture
Commercial / Judgment
Outcome
Rectification granted
Legal Topics
Rectification of Trust Documents, Interpretation of Pension Scheme Rules, Consumer Price Index Cap on Pension Escalation, Equitable Remedies
Trusts Pensions Equity Rectification of Trust Documents Interpretation of Pension Scheme Rules Consumer Price Index Cap on Pension Escalation Equitable Remedies

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Parties

Irish Pensions Trust Limited

Plaintiff

Central Remedial Clinic

Defendant

Richard Tierney

Defendant

Mercer Human Resource Consulting Limited

Defendant

Procedural Posture

Commercial / Judgment

Legal Issues

  1. 1 Whether the 1993 special rule governing pension escalation should be rectified to include a CPI cap
  2. 2 Whether the explanatory booklets or special rules prevail in determining escalation rights
  3. 3 Whether the omission of the CPI cap in the special rules reflects the parties' intention

Ratio Decidendi

The omission of the CPI cap in the 1993 special rule was a mistake and does not reflect the common intention of the parties, as evidenced by explanatory booklets, funding arrangements, and consistent practice. The special rule should be rectified to include the CPI cap, ensuring escalation rights are applied at the CPI capped rate or 5% per annum compound if less.

Court Disposition

Rectification granted

Orders

  • The 1993 special rule is rectified by the addition of the words: 'Provided that such an increase shall not exceed the cumulative percentage increase in the consumer price index since the member's normal pension date.'
  • The trustee is directed to provide for and make payments of pension increases at the CPI capped rate of escalation.