Stephenson Harwood represents successful Claimant in £1.6 billion pension fund dispute
Law firm Stephenson Harwood LLP has successfully represented the Claimant, Renishaw plc, in a significant £1.6 billion pension fund dispute in the Chancery Division of the High Court.
The case centred on the way in which a 'Money Purchase Underpin' in the defined benefit pension fund's rules operated. There had been a historic drafting mistake which, if read literally, meant that each members' benefits would have to be increased, on average, by eleven times. This would escalate an approximately £140 million liability in the fund to roughly £1.6 billion.
HHJ Hodge KC was asked to use corrective construction to interpret the Rules in such a way that missing words could be read into the document. He agreed with the Claimant's submission that there had been a drafting mistake, and that it was sufficiently clear how to correct this taking account of the context. The Court also confirmed the pension fund had been managed correctly in line with this interpretation.
Pensions Disputes Partner Chris Edwards-Earl led the Stephenson Harwood team acting for Renishaw Plc, supported by Associates Henry Bugg and Emily Elmitt, instructing Michael Tennet KC and Seb Allen of Wilberforce Chambers. Gowling WLG represented the Representative Beneficiary instructing Andrew Mold KC also of Wilberforce Chambers. Saul Margo of Outer Temple Chambers represented the Trustee in the proceedings.
