In the Courth of Appeal (Civil Division)
South Thameside Construction Limited v Ellen Fisher
Ms Fisher worked as a personnel manager at the Appellant’s company, South Thameside Construction Ltd for the past 10 years. On 10th January 2006, South Thameside wrote to Ms Fisher explaining that they would be contributing extra funds to her occupational pension scheme in April 2006. Their letter stated:
‘In appreciation of your hard work over the last year, we have decided to make a discretionary one-off contribution to your pension plan of 15% of your current salary. The payment will take place at the end of this financial year. If you wish to accept this offer, please reply by 16th January.’
Ms Fisher replied to the letter on 11th January and continued to work as normal. In February 2006, Ms Fisher received an offer of employment from another construction company, but rejected it on the basis that their pension arrangements were less beneficial than South Thameside’s.
On 22 March 2006, South Thameside wrote to Ms Fisher stating that the company was facing financial difficulties and that they would not be able to make the payment.
At first instance, Willow J found that:
a) There was a binding agreement between the parties:
ii. Ms Fisher had provided consideration for the Appellant’s promise, on the grounds that Ms Fisher’s continued employment constituted a factual benefit to the Appellants.
b) Furthermore, in the absence of a binding agreement, the Appellants were estopped from reneging on their promise.
South Thameside appeals to the Court of Appeal.
