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Discretionary bonuses

14 June 2010

In Attrill and others v Dresdner Kleinwort Ltd and Commerzbank AG the High Court rejected an application by the defendants for summary judgment. It held that whether conditions attached to the award of provisional bonuses had been properly applied in the circumstances required fuller investigation into the facts which might add to or alter the evidence and so affect the outcome of the case. The issue should therefore proceed to trial.

However, the High Court held that a cause of action based solely on an announcement of a guaranteed minimum bonus pool of EUR400 million, intended to retain staff when there was speculation about a company sale, had no realistic chance of success at trial since it was insufficiently clear and precise to be contractually binding.