UK High Court Awards $5.3 Million for Wrongful Refusal of Discretionary Bonus
In a significant decision for employers, the United Kingdom’s High Court of Justice, King’s Bench Division, has upheld a claim for a discretionary bonus after finding that the employer exercised its discretion irrationally. In Gagliardi v Evolution Capital Management LLC, the High Court awarded an employee $5.385 million, despite the bonus being described as “purely discretionary.” The judgment is a timely reminder—particularly as bonus season approaches—that discretion does not mean unfettered freedom.