The Court considered the interpretation of a clause in a pension scheme trust deed which defines the phrase ‘Retail Prices Index’ and which allows the trustees of the pension scheme to adopt a ‘replacement’ of the officially published Retail Prices Index.
Held: The Court of Appeal were right to conclude that the correct interpretation of the first sentence of the Definition namely, that ‘the RPI’ means ‘the RPI or any index that replaces the RPI and is adopted by the trustees’.
Judges:
Lady Hale, President, Lord Wilson, Lord Sumption, Lord Hodge, Lord Briggs
Citations:
[2018] UKSC 55, UKSC 2016/0210
Links:
Bailii, Bailii Summary, SC, SC Summary, SC Video Summary, 2018 Jun 11 am Video
Jurisdiction:
England and Wales
Citing:
Appeal from – Barnardo’s and Others v Buckinghamshire and Others CA 2-Nov-2016
Trustees of the appellant charity’s pension scheme sought to sanction the base against which pensions would be uprated under the scheme from a link to the Retail Prices Index, to a link to the Consumer Prices Index.
Held: Lewison and McFarlane . .
Cited – Prenn v Simmonds HL 1971
Backgroun Used to Construe Commercial Contract
Commercial contracts are to be construed in the light of all the background information which could reasonably have been expected to have been available to the parties in order to ascertain what would objectively have been understood to be their . .
Cited – Rainy Sky Sa and Others v Kookmin Bank SC 2-Nov-2011
Commercial Sense Used to Interpret Contract
The Court was asked as to the role of commercial good sense in the construction of a term in a contract which was open to alternative interpretations.
Held: The appeal succeeded. In such a case the court should adopt the more, rather than the . .
Cited – Wood v Capita Insurance Services Ltd SC 29-Mar-2017
Construction of term of contract for the sale and purchase of the entire issued share capital of a company.
Held: The appeal was dismissed: ‘the SPA may have become a poor bargain, as it appears that it did not notify the sellers of a warranty . .
Cited – Arnold v Britton and Others SC 10-Jun-2015
Absurdity did not defeat a clear clause
A standard lease of plots on a caravan park, contained a provision which appeared to increase the rent by 10% in each year. The tenants argued that such a substantial increase could not have been intended.
Held: The tenants’ appeal failed . .
Cited – Safeway Ltd v Newton and Another CA 5-Oct-2017
Briggs JSC said: ‘the Deed exists primarily for the benefit of non-parties, that is the employees upon whom pension rights are conferred whether as members or potential members of the Scheme, and upon members of their families (for example in the . .
Cited – Bestrustees v Stuart ChD 10-Apr-2001
‘The issues in this case concern the normal retirement date (‘NRD’) for the purpose of determining the pension rights of men and women under a pension scheme.’ . .
Cited – In re Courage Group’s Pension Schemes Ryan v Imperial Brewing and Leisure Ltd ChD 1987
It was possible to amend the provisions of a pension scheme provided the amendments did not conflict with the purposes of the scheme. How was a court to identify such purposes: ‘It is trite law that a power can be exercised only for the purpose for . .
Cited – Spooner v British Telecommunications plc 2000
. .
Cited – National Grid Co Plc v Mayes and Others; International Power Plc (Formerly National Power Plc) v Healy and Others HL 7-Jun-2001
The release by the trustees of a sum due to the pension scheme from the employers, did not make funds payable to the employer, so as to trigger the clause within the scheme trust deed which would restrain such a payment. Where an actuarial surplus . .
Cited – Chartbrook Ltd v Persimmon Homes Ltd and Others HL 1-Jul-2009
Mutual Knowledge admissible to construe contract
The parties had entered into a development contract in respect of a site in Wandsworth, under which balancing compensation was to be paid. They disagreed as to its calculation. Persimmon sought rectification to reflect the negotiations.
Held: . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 11 July 2022; Ref: scu.628164