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Compromise agreements

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.

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