On the go: A lawsuit against Universities Superannuation Scheme directors alleging climate inaction and breaches of duty will be heard by the Court of Appeal.
The case was brought by Dr Neil Davies, senior research fellow at the Bristol Medical School, and Dr Ewan McGaughey, senior lecturer at King’s College London, in November last year.
The claimants were backed by several branches of the University and College Union, and filed suit against USS directors and chief executive Bill Galvin.
Davies and McGaughey filed a multiple derivative claim alleging that USS directors had conducted a flawed valuation as a pretext for making cuts to USS members’ retirement income of around 30 per cent, and that they had failed to conduct a public equality assessment of the impacts of these cuts, which they say disproportionately impact women and minorities.
A multiple derivative claim is a claim brought or continued by a shareholder on behalf of the company in relation to a breach of duty by a director.
The pair also allege that the directors failed to cut the “super-inflated” operating costs, preferring to cut members’ benefits instead, and that they had failed to divest from fossil fuels in line with the wishes of a purported majority of scheme beneficiaries.
The USS disputed these claims, and the case ended up before the High Court.
Davies and McGaughey needed the court’s permission to pursue their multiple derivative claim, and the resultant hearing was the first time USS representatives were able to put their counter-case.
However, the High Court dismissed the case in May, after the judge found no evidence to justify the case’s four claims.
On October 21, Lord Justice Lewison granted the claimants permission to appeal.
In his decision, he said “the grounds of appeal raise important issues (some of which are novel) and have sufficient merit to warrant consideration by the full court”.
