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Compromise agreements: Compromise agreement with chief executive was not ultra vires

This report relates to 1 case(s)

In Gibb v Maidstone & Tunbridge Wells NHS Trust [2010] IRLR 786 CA, the Court of Appeal held that a compromise agreement entered into by an NHS trust and its chief executive was not so irrationally generous as to be ultra vires, as subsequently argued by the trust.

Key points

  • A compromise agreement under which the chief executive of an NHS trust would receive a payment of £75,000 in lieu of notice and compensation of £175,000 was not "irrationally generous" and ultra vires, as argued by the trust.