Low & Bonar Plc & Anor v. Mercer Ltd [2010] ScotCS CSOH_47 (01 April 2010)

Low & Bonar Plc & Anor v. Mercer Ltd [2010] ScotCS CSOH_47 (01 April 2010)

The board minute of 5 March 1991, signed by the chairman, constituted a 'deed' for the purposes of clause 4(1) of the 1989 Supplemental Definitive Deed under Scots law, being a formal document evidencing a clear intention to amend the scheme. With the Trustees' written consent on 5 July 1991, the scheme was validly amended to equalize the normal retirement date for men and women at 65 from 1 July 1991. The pursuers' claim that the scheme was not effectively amended until 2002 is therefore unfounded, and the action is dismissed.

Citation
[2010] ScotCS CSOH_47
Parties
Pursuer: Low & Bonar Plc; Pursuer: Low & Bonar Pension Trustees Limited; Defender: Mercer Limited
Jurisdiction
Scotland
Judgment Date
01 April 2010
Procedural Posture
Civil / Outer House, Court of Session – Opinion on Relevancy and Dismissal
Outcome
Action dismissed
Legal Topics
Pension Scheme Amendment, Equalization of Retirement Ages, Interpretation of Trust Deeds, Professional Negligence, Breach of Contract
Pensions Law Trust Law Contract Law Pension Scheme Amendment Equalization of Retirement Ages Interpretation of Trust Deeds Professional Negligence Breach of Contract

Case Brief

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Parties

Low & Bonar Plc

Pursuer

Low & Bonar Pension Trustees Limited

Pursuer

Mercer Limited

Defender

Procedural Posture

Civil / Outer House, Court of Session – Opinion on Relevancy and Dismissal

Legal Issues

  1. 1 Whether the normal retirement date (NRD) under the Low & Bonar Group Retirement Benefits Scheme was effectively equalized at age 65 prior to 2002
  2. 2 Whether the board minute of 5 March 1991 constituted a 'deed' sufficient to amend the scheme under clause 4 of the 1989 Supplemental Definitive Deed
  3. 3 Whether, alternatively, Rule 16(B) permitted the alteration of NRDs for members by special terms

Ratio Decidendi

The board minute of 5 March 1991, signed by the chairman, constituted a 'deed' for the purposes of clause 4(1) of the 1989 Supplemental Definitive Deed under Scots law, being a formal document evidencing a clear intention to amend the scheme. With the Trustees' written consent on 5 July 1991, the scheme was validly amended to equalize the normal retirement date for men and women at 65 from 1 July 1991. The pursuers' claim that the scheme was not effectively amended until 2002 is therefore unfounded, and the action is dismissed.

Court Disposition

Action dismissed

Orders

  • Action dismissed as irrelevant; no proof allowed.