Multimodal Logistics faces £1.1m pension liability bill after losing bid to appeal

Felixstowe-based Multimodal Logistics has been ordered to pay £1.1m to trustees of a workplace pension after losing a bid to appeal a High Court ruling.

The haulier and China Shipping (U.K.) Agency was found liable by the High Court last year to pay £1.1m and £6.6m, respectively, to PS Independent Trustees, which brought the litigation.

A bid by both companies to appeal the High Court ruling was rejected this month by Marie Bancroft-Rimmer, a Master of the Court of Appeal.

The case centred on the liability for a savings plan for UK-based shipping firm Johnson Stevens Agencies (JSA).

Both China Shipping and Multimodal were participating employers in the plan, which offered final salary benefits to members.

JSA entered administration in May 2011 and was dissolved in February 2014. PS Independent Trustees, acting on behalf of members, argued China Shipping and Multimodal should pay the outstanding liabilities.

China Shipping and Multimodal argued that JSA was liable for 90% of the scheme’s total exposure and insisted they are not required to contribute to any resulting deficit.

It is not clear if China Shipping and Multimodal will appeal the decision.