Libby v Kennedy 1

United Kingdom

Reference: (1998) OPLR 213

A member of the Barnados Staff Pension Scheme died, leaving a former wife, a current wife and three children. He had nominated his second wife to receive his death in service benefit. When he died, the pensions manager recommended payment in accordance with the member's wishes and the payment was approved and made by a sub-committee of the trustees. Others in the family objected to the decision.

The Pensions Ombudsman upheld their complaint, and the trustees appealed to the High Court.

The High Court held the trustees had reached a proper decision on the distribution of the lump sum. A Minute of the trustees allowed a decision to be made with the consent of just two trustees "where there were no difficulties in establishing the rightful beneficiary". This did not mean that the two trustees had no authority if, in hindsight, the case proved more difficult than at first thought. Both the delegation and the decision had been valid. Even if the delegation had not been properly made by the two trustees, the full trustee board effectively ratified it at the next meeting, despite a statement in Minutes that the trustees had merely noted the decision. The trustees knew what had been done and why, and letting it pass was clear concurrence.