Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

royal-courtsTwo former traders at a specialized bank and asset manager have lost their legal claim for bonuses that they alleged that they were entitled to during their employment.

Andrew Brogden and Robert Reid, the former head and deputy head of Investec’s equity derivatives desk, brought a claim for breach of contract against their former employer, claiming that the firm had failed to honour a verbal agreement to pay them a set amount for their bonuses during their employment. They resigned in 2011 and subsequently launched a claim in the High Court for £6 million in bonuses that they claimed had been withheld from them.

The case came to the High Court in June 2014, with both of the claimants giving evidence in their favour at the hearing. Mr Brodgden and Mr Reid claimed that the issue of contractual bonuses were integral to their discussions with Investec before they joined the bank in 2007, stating that they would not have joined the bank if their bonuses were simply discretionary. They therefore claimed that they had a contractual right to receive a set bonus each year and that Investec had breached their contracts of employment by failing to pay them the correct amount of bonus, alleging that the amount of bonus that they should have been paid should have been set by an “institutional market rate” formula rather than the amount of profit or loss that the bank had made.

Investec’s defence to the claim was that the bank had not made a pre-contractual agreement with the two traders to pay them a set amount of bonus and that the amount of bonus that they would receive was discretionary in nature. The bank said it had paid bonuses to each of the men in each year and that in 2011 it had paid £150,000 to Mr Brogden and £100,000 to Mr Reid.

The High Court dismissed Mr Brogden and Mr Reid’s claim for breach of contract, holding that there had been no pre-contractual agreement to pay the claimants a set contractual bonus and that the bonus scheme was in fact discretionary. Mr Justice Leggatt dismissed the claim that their bonuses should have been based on the ‘institutional market rate’ as “wholly incredible” but also stated that he found the claimants’ evidence to be honest, although not reflective of events that had occurred at the time of the contract.

Mr Brogden and Mr Reid were ordered to pay the legal costs of Investec in defending the claim, at more than £1.5 million.

Chris Hadrill, an employment solicitor at Redmans, commented on the High Court case: “This case demonstrates the risks that claimants in the High Court take when attempting to prove that there has been a breach of contract – whether this is a breach of their contract of employment or otherwise. Although the rewards of legal action can be high if you’re successful, this case has apparently cost the claimants £1.5 million in Investec’s legal costs alone – let alone their own legal costs.”

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

Tagged with →  

Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

Share →

Our awards

Request a callback

    Your first name (required)

    Your last name (required)

    Your email (required)

    Your telephone number (required)

    Brief details of your enquiry

    Contact us

    Please feel free to discuss your own position and concerns. Contact your nearest office on:

    T: 020 3397 3603
    E: enquiries@redmans.co.uk
    W: www.redmans.co.uk

    Testimonials

    4.78 Average

    265 Reviews

    Alison M

    Very happy with the advice I received

    Posted 1 day ago

    Margaret A

    I found everything about the company to be extremely professional and efficient. During my initial contact with Chris, he listened well and was reassuring, so I felt confident that my case would be well handled. Caroline was excellent at explaining all the legal points and answering my questions, as well as being very supportive and understanding throughout the process. I would definitely recommend this company.

    Posted 1 day ago

    Sanja K

    Very efficient and professional service.

    Posted 1 day ago

    Anonymous

    I found the advice I was given by Redmans Solicitors to be clear and useful and found the solicitor on my case to be both knowledgeable and approachable.

    Posted 6 days ago

    Karen T

    Great service. Thank you.

    Posted 1 week ago

    Anonymous

    Excellent service from Chris & Mel Chin. The best outcome was achieved from the redundancy process. They were extremely thorough, listened carefully and acted swiftly on my behalf. I highly recommend Redmans Solicitors

    Posted 1 week ago

    Shanine M

    Excellent service, thank you so much!

    Posted 1 week ago

    Anonymous

    I found Caroline and Chris very Helpful and provided excellent service. Caroline especially provided great legal advice and made me feel at ease with the whole process. I would highly recommend them. Thank you!

    Posted 1 week ago

    Gayle B

    Excellent company very professional would definitely recommend

    Posted 1 week ago

    Alex K

    Redmans provided an excellent service, timely and effective. Will definitely recommend.

    Posted 1 week ago

    Anonymous

    Great job done on my employment law

    Posted 1 week ago

    Dominica S

    Caroline & Chris were very prompt and efficient.Very happy with the service and will definitely recommend Redmans Solicitor to everyone !

    Posted 1 week ago

    Sandra K

    If you are looking for a group of solicitors who are Professional, Caring and on point, then look no futher than Redmans. I was literally hand held through out my case. Can not find fault with this company, very happy with the result and the service i received. Would highly recommend Redmans.

    Posted 1 week ago

    Anonymous

    I found dealing with Redmans a pleasure. I got to speak to someone quickly, the advice was profferred promplty and the service was not 'pushy'. In addition, the administration was excellent. What more could you ask for?

    Posted 1 week ago

    ALISDAIR L

    Redmans did a brilliant job regarding my redundancy agreement. I miss read an extra charge which wasnt the case so doing a new review to clarify. I would recommend Redmans for any employment law issues you may have.

    Posted 2 weeks ago

    Christos G

    Great legal advice and quick correspondence. Very supportive and helpful through the entire process. Thank you Redmans!

    Posted 2 weeks ago

    Anonymous

    Chris Hadrill advised me on a redundancy settlement agreement. He was very responsive, easy to deal with and gave me good advice at a stressful time.

    Posted 2 weeks ago

    Zara M

    Rana at Redmans gave me support and confidence I needed to ensure a wrong, was put right. I couldn’t recommend enough.

    Posted 2 weeks ago

    Stuart T

    Chris provided an excellent service, he was efficient and friendly and I had no doubt when recommending him to my colleagues

    Posted 2 weeks ago

    Anonymous

    Excellent service, prompt responses. Chris Hadrill provided excellent and efficient service.

    Posted 2 weeks ago

    Jane M

    Wonderful solicitors who really listen to you and who are there to offer expert legal advice but they also have a personal touch and you really feel supported both from a legal aspect but also from a personal aspect. They really listen .

    Posted 2 weeks ago