The court had to answer the question of whether the Pensions Ombudsman could make orders which the court could not.
Held: It could not, Knox J said: ‘there is a real distinction between ordering compensation for inconvenience and distress caused by maladministration as an adjunct to the power to remedy injustice caused by maladministration which . . I take to be permissible, and requiring the repayment of what might well be, and in this case were, very substantial sums by way of payment out from a pension fund, on the other hand. It is trite law that pension funds must operate within the law and it does not seem to me right that there should be a different answer to the question ‘are you legally liable to repay this sum’ according to the tribunal to which resort is had so that the answer is: ‘If I am sued in court, No, but if a complaint is made to the Pensions Ombudsman, Yes.’ The injustice through maladministration must in this case consist of the detriment suffered by the payment out itself and is in no sense ancillary as are claims to compensation for inconvenience and distress. My second reason is tied up with the first and is that s 146(6)(a) of the 1993 Act prevents the Pensions Ombudsman from investigating a complaint if before the complaint is made proceedings have been begun in court in respect of the matters which would be the subject of the investigation. That suggests that the two are intended to be mutually exclusive alternatives and it would be strange if it was contemplated that the alternatives would or might produce different results as to the substance of the dispute. I can well imagine that the two tribunals would be contemplated as having radically different procedures and it may be types of relief but I would not expect differences on such fundamental matters as whether there was a liability to repay capital sums. Also there would be a possibility of abuse if it were possible to avoid an impending complaint to the Pensions Ombudsman by a well-timed application for the determination of a dispute of fact or law.’
Judges:
Knox J
Citations:
[1997] 1 All ER 862
Jurisdiction:
England and Wales
Citing:
Cited – Miller; KC Independent Trustees Limited v Stapleton and Pensions Ombudsman CA 30-Jul-1996
. .
Cited – Westminster City Council v Haywood and Another ChD 12-Mar-1996
The Pensions Ombudsman may not order trustees of a pension scheme to pay compensation which was ultra vires the scheme. . .
Cited – Wild v Pensions Ombudsman QBD 17-Apr-1996
Financial dependency on a deceased pension fund member not established by cohabitation only. . .
Cited by:
Cited – Legal and General Assurance Society Ltd v CCA Stationery Ltd ChD 12-Dec-2003
The claimant had managed a pension scheme for the respondent company. It now challenged a finding of maladministration of the scheme, with respect to the methods of calculation of discounts applicable to those leaving the scheme.
Held: Since . .
Approved – Edge v Pensions Ombudsman 12-Dec-1997
The Vice Chancellor discussed whether the pensions ombudsman had powers wider than those of the court. Referring to Hillsdown, he said: ‘I respectfully agree with this approach. In a case in which the maladministration complained of consists of an . .
Cited – Haward and others v Fawcetts HL 1-Mar-2006
The claimant sought damages from his accountants, claiming negligence. The accountants pleaded limitation. They had advised him in connection with an investment in a company which investment went wrong.
Held: It was argued that the limitation . .
Cited – Jones and others v Firkin-Flood ChD 17-Oct-2008
The trustees had contracted to sell shares in a private company held within the estate. A family member now claimed that they were held in trust after a settlement of a possible challenge to the will based in lack of testamentary capacity and undue . .
Cited – Public Trustee v Cooper 2001
The court looked at the circumstances required when a court was asked to approve a proposed exercise by trustees of a discretion vested in them. The second category of circumstances was (quoting Robert Walker J): ‘Where the issue was whether the . .
Lists of cited by and citing cases may be incomplete.
Financial Services
Updated: 24 November 2022; Ref: scu.188828