High Court rejects "rectification by the back door" | Practical Law

High Court rejects "rectification by the back door" | Practical Law

In Smithson & Ors v Hamilton [2007] EWHC 2900 (Ch) the High Court has rejected an application by the trustees of the Siemens Fire Safety and Security (PFP) Pension scheme to set aside a provision in the scheme rules conferring favourable early retirement rights on certain deferred members. The claimants (who were the participating employers in and trustees of the scheme) had applied for relief under the so-called principle in Hastings-Bass, on the basis that the provision was a drafting mistake. But the court held that the claimants had in effect sought "rectification by the back door", in circumstances where a rectification application could not be brought. Neither did the court accept an alternative submission from the claimants that it should grant equitable relief for mistake. Additionally, a counter-claim relating to the validity of the adoption of a normal retirement age of 65 following the judgment in Barber v Guardian Royal Exchange was dismissed.

High Court rejects "rectification by the back door"

Practical Law UK Legal Update 6-379-8846 (Approx. 7 pages)

High Court rejects "rectification by the back door"

by PLC Pensions
Published on 20 Dec 2007England, Wales
In Smithson & Ors v Hamilton [2007] EWHC 2900 (Ch) the High Court has rejected an application by the trustees of the Siemens Fire Safety and Security (PFP) Pension scheme to set aside a provision in the scheme rules conferring favourable early retirement rights on certain deferred members. The claimants (who were the participating employers in and trustees of the scheme) had applied for relief under the so-called principle in Hastings-Bass, on the basis that the provision was a drafting mistake. But the court held that the claimants had in effect sought "rectification by the back door", in circumstances where a rectification application could not be brought. Neither did the court accept an alternative submission from the claimants that it should grant equitable relief for mistake. Additionally, a counter-claim relating to the validity of the adoption of a normal retirement age of 65 following the judgment in Barber v Guardian Royal Exchange was dismissed.