Litigation Letter
Compromise agreements
Gibb v Maidstone & Tunbridge Wells NHS Trust [2009] IRLR 707, [2009] EWHC 862, [2009] All ER (D) 209 (Apr); NLJ 9 October p1380
A compromise agreement can only settle a valid claim and not an agreement for a severance payment which was ultra vires.
Comment:
Ian Smith in the New Law Journal of 9 October observed that this was a point of some topicality at a time when newspapers
are regularly carrying stories attacking not just bonuses in the private sector but also large pay-offs for highly-paid executives
in the public sector.