| Mallone v BPB Industries plc | |
| Court: | Court of Appeal |
| Citations: | [2002] EWCA Civ 126 |
| Keywords: | Discretion, implied terms |
Mallone v BPB Industries plc [2002] EWCA Civ 126 is a UK labour law case, concerning control of an employer's discretion.
Mr Giovanni Mallone claimed compensation for BPB plc unreasonably withdrawing his share options after being dismissed. Mallone's contract, as a managing director of BPB's Italian subsidiary, incorporated a share option, where Rule 5(b)(iii) said options be awarded to terminated employees ‘as the directors in their absolute discretion shall determine’. They had passed a resolution under an express rule of the share option scheme, which allowed award of share options to terminated employees in ‘appropriate proportion’. He claimed their exercise of discretion was unreasonable.[1]
The Court of Appeal held the use of the employer's discretion was unreasonable in withdrawing the share options. Rix LJ said the following.
Wilson J and Waller LJ agreed.