Courts greenlight Commerzbank challenge in key bankers bonus case
The Court of Appeal has granted Commerzbank permission to appeal against a €50m (£40m) judgment in favour of a group of former Dresdner Kleinwort bankers, who had allegedly been promised bonuses in 2008. The appeal - which will be heard next year - comes after a High Court judgment issued by Mr Justice Owen in May that the bankers' former employer, Commerzbank, had acted in breach of its contractual obligations in cutting bonuses to 104 staff after it acquired Dresdner.
November 06, 2012 at 07:03 PM
2 minute read
The Court of Appeal has granted Commerzbank permission to appeal against a €50m (£40m) judgment in favour of a group of former Dresdner Kleinwort bankers, who had allegedly been promised bonuses in 2008.
The appeal – which will be heard next year – comes after a High Court judgment issued by Mr Justice Owen in May that the bankers' former employer, Commerzbank, had acted in breach of its contractual obligations in cutting bonuses to 104 staff after it acquired Dresdner.
Owen ruled that Commerzbank had breached the implied terms of the employees' contracts, which entitled them to receive their full bonus payments.
Lord Justice Davis and Lord Justice Longmore's decision yesterday (5 November) paves the way for a final ruling on whether a binding promise was made to the bankers on their bonuses, with major legal implications for how businesses offer bonuses to staff.
Thomas Linden QC of Matrix Chambers and Brick Court Chambers' Martin Chamberlain and Oliver Jones have been instructed by Linklaters employment partner Nicola Rabson to act for the banks.
Meanwhile, a Stewarts Law team led by commercial litigation head Clive Zietman has been advising 83 of the bankers alongside Nigel Tozzi QC from 4 Pump Court. Mishcon de Reya is acting for the remaining 21 bankers, fielding a team under employment partners Mark Levine and Daniel Naftalin, with Essex Court's Andrew Hochhauser QC and David Craig instructed as counsel.
Commenting on the decision, former Linklaters lawyer Paul Quain, now a partner at GQ Employment Law, said: "This is a major case for all the banks, which will affect what bank bosses can say about bonuses in team meetings to motivate staff.
"Irrespective of whether Commerzbank ultimately wins or loses, the clear message for City businesses is that they need to be very careful saying one thing about bonuses in a team meeting, then changing their mind later when it comes to putting things in writing or actually paying the bonuses."
For more, see Stewarts and Mishcon prevail in £40m battle over banker bonuses.
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