The UK private client firm Brewin Dolphin has won a key judgement in a High Court case brought by two former divisional directors who argued they were entitled to receive trail commission in perpetuity, state several media reports.
Andrew Ayers and Derek Baigent, sued the firm in the High Court after being made redundant, claiming to have been dismissed without notice when they should have been given no less than six months’ notice in writing.
The biggest claim made against Brewin Dolphin was that their employee contract entitled them to fees of 0.1 per cent in perpetuity for the funds they brought to the company during their employment between 2004 and 2009.
The duo also accused Brewin Dolphin of breaching its contractual agreement by not paying them trail fees of £35,000 (around $54,000) and £25,000, which it is alleged they would have earned during their notice period between 30 April 2009 and 30 September 2009.
Master Roberts, who was handing down a judgement only on the "fees in perpetuity" argument, ruled in favour of the firm, although other arguments are still being disputed in a separate tribunal.
“Both parties provided me with extensive arguments and this was a case where there were no previous cases, as far as I’m aware. The matters of the case were very strongly in the defendant’s favour on the preliminary issue [of fees in perpetuity],” said Master Roberts.
He said the case was clear cut.