Andrew Short KC, David E Grant KC, Philip Stear and Helen Pugh in pensions and company Court of Appeal case; McGaughey & Anor -v- USS Ltd

Andrew Short KC, David E Grant KC, Philip Stear and Helen Pugh were in Court of Appeal this week for the long running pensions and company law dispute (1) Dr Ewan McGaughey (2) Dr Neil Davies -v- Universities Superannuation Scheme Ltd.

David E Grant and Philip Stear acted on behalf of the Appellants, instructed by Leigh Day, in the Court of Appeal in (1) Dr Ewan McGaughey (2) Dr Neil Davies -v- Universities Superannuation Scheme Ltd. Andrew Short KC and Helen Pugh acted on behalf of the Respondent, instructed by CMS Cameron McKenna Nabarro Olswang LLP.

The claim brought by members of a pension scheme is as a common law derivative action. This ground-breaking case has raised novel issues with profound consequences for pensions schemes, trusts and companies. Issues include the availability of derivative claims at common law; the nature of trustee / director duties in the pensions context and in relation to investment strategies and divestment from fossil fuels; and the extent to which the court should intervene in relation to such matters. The pension scheme has been valued at £90 billion.

In 2022, the High Court refused to grant the Claimants permission to continue a derivative claim against the Respondent.

The Court of Appeal is being asked to allow the appeal and grant permission for the members to bring a claim against the corporate trustee’s directors for breach of duty.

Judgment to be announced later in the year.

Judgment and Recordings

Read the High Court judgment here.

Watch the recordings of the hearing here.

Find out more

Andrew Short KC‘s pensions work encompasses both private and public sector schemes and includes issues of construction, funding issues, preservation and revaluation, Beckmann claims and various regulatory issues including contribution notices and financial support directions. He is particularly sought after in cases that require a knowledge of both pensions and employment or discrimination law, including some of the most significant equalisation cases of recent years. He is ranked as a Star Individual in directories and is on the Consultation Board of Practical Law: Pensions.

To find out more on Andrew, contact Nick Levett +44 (0)20 7427 4908 or Mark Gardner +44 (0)20 7427 4909

David E Grant KC has been involved in some of the most high-profile pensions cases in recent years including appearing before the Grand Chamber of the ECJ in Safeway Ltd v Newton & Anor [2020] Pens.L.R. 4 as to whether a scheme can be retrospectively levelled down. He acts for employers, trustees, members, professional advisors and public bodies, and has acted in nearly all the rectification cases in the last few years. David is recommended in Chambers & Partners and Legal 500 and is described as “The go-to junior for Part 8 and professional negligence claims concerning pension schemes.”

To find out more on David, contact Matt Sale +44 (0)20 7427 4910 or George Bennett on +44 (0)207 427 0807

Philip Stear has a broad (advisory and contentious) chancery practice with a particular focus on private trusts and occupational pension schemes. He is an acknowledged expert in relation to technical pensions law and regulatory practice, and combines this with long practical experience of occupational pension schemes and the practical challenges they face in relation to governance and trusteeship, benefit design and modification, funding and security and member communications and disputes.

To find out more on Philip, contact Matt Sale +44 (0)20 7427 4910 or George Bennett on +44 (0)207 427 0807

Helen Pugh specialises in general commercial litigation, civil fraud, civil fraud, contentious insolvency and company law issues, and professional negligence. Her practice has a strong international element with expertise in jurisdiction disputes and conflict of law issues, including as they arise at an interim stage in applications for worldwide freezing orders and service out applications or on the substantive claim, and in the cross-border insolvency context.

To find out more on Helen, contact Matt Sale +44 (0)20 7427 4910 or George Bennett on +44 (0)207 427 0807

News 15 Jun, 2023