Pension trustees’ fee dispute is stayed for arbitration

The Alkali Jamaica pension trustees’ claim against BPM Financial was stayed pending arbitration on 25 September. The Supreme Court decided where the dispute should be resolved, without deciding whether the challenged fees or alleged breaches were proved.

The trustees had previously invoked arbitration over investment-management conduct and fees. They later argued that the court claim concerned different, non-contractual duties and sought remedies unavailable to arbitrators. The judge found that the substance of the dispute remained the same and that the agreement expressly covered non-contractual claims related to the investment relationship.

After examining the pensions provisions relied upon, the court found no statutory restriction preventing arbitration of this dispute. It also rejected the suggestion that seeking declarations necessarily reserved the matter to a court. The ruling concerned this agreement, these duties and these remedies, rather than every dispute involving pension regulation.

Filing suit did not unilaterally end the agreement to arbitrate: BPM had not accepted its repudiation, but had sought a stay. The court chose suspension rather than striking out, leaving room for matters that might later require judicial determination. BPM received costs and the trustees were granted leave to appeal.

Forum ruling only. Allegations concerning fees, trust and fiduciary duties remain allegations in this decision; leave to appeal is not proof that an appeal was filed or determined. Complete official judgment reviewed; subsequent appeals or treatment have not been checked.