Linklaters, Mishcon de Reya and Stewarts Law are set for a high-profile battle over €50m (£43m) in unpaid bankers' bonuses after an appeal court ruling this week.

The Court of Appeal on Tuesday (8 March) granted more than 100 former Dresdner Kleinwort bankers permission to challenge Commerzbank in a dispute over bonuses.

The case, which was first filed with the High Court in September 2009, has seen 104 bankers bring claims against Commerzbank, following a 90% bonus cut announced after it merged with Dresdner Bank in May 2009.

Before the takeover, Dresdner staff were informed that a €400m (£343m) pot had been put aside to cover bonus expenses. However, after the tie-up, the bank sent out an email saying that bonuses would be reduced. The dispute rests on Commerzbank's assertion that the decision over bonus was discretionary.

The Court of Appeal rejected Commerzbank's attempt to dismiss the case on a summary basis, leaving the dispute on course for the High Court. The case is the largest legal dispute seen over bankers' bonuses in the wake of the financial crisis two years ago, when a number of institutions moved to slash bonus awards, and is being closely watched by the banking industry.

Linklaters employment partner Nicola Rabson is advising Commerzbank with Brick Court Chambers head Jonathan Sumption QC instructed as counsel.

Stewarts Law commercial litigation head Clive Zietman is advising 83 of the bankers alongside Nigel Tozzi QC from 4 Pump Court. Mishcons is representing the remaining 21 bankers, fielding a team under employment partners Mark Levine and Daniel Naftalin. Essex Court's Andrew Hochhauser QC and barrister David Craig are instructed as counsel.

Zietman told Legal Week: "Our clients are absolutely delighted by this result and it will be regrettable if the case does not now settle, but if it doesn't, they are most certainly prepared to take the matter to a full trial."

Mishcons added in a statement: "We welcome the Court of Appeal's decision to fully reinstate our original claim and are pleased that it has recognised that this matter should proceed to trial. We hope a hearing can take place as soon as possible."

Click here for a link to the full judgment.