German banking giant Commerzbank today finally gave up its four-year legal war with 104 London investment bankers who have been fighting for €52 million (£43.9 million) in unpaid bonuses.
The victorious bankers are now expected to receive the cash within weeks, with several in line for close to £1 million each.
Commerzbank and its lawyers, Linklaters, decided to halt the battle a week after losing in the Court of Appeal, which ruled unanimously to uphold an earlier High Court verdict which found the bankers were entitled to their bonuses.
The German bank could have considered a further appeal to the Supreme Court, but admitted “the prospects of success” were limited and “would unnecessarily expend resources”.
Commerzbank argued it was “reasonable” to slash the bankers’ bonuses in early 2009 because of the credit crunch and huge losses.
But the bankers argued successfully that their employer had made an earlier commitment to pay bonuses and, contrary to what Commerbank claimed, it was contractual, not provisional.
Clive Zietman, head of commercial litigation at solicitors Stewarts Law, which represented 83 of the bankers, said: “I am delighted to say that the Common Law and common sense have prevailed. These proceedings are now closed.”
