Banking Litigation Update

We have published our latest Banking Litigation Update, summarising some of the more important UK cases and developments affecting financial institutions since our last update in February 2013, including: MIS-SELLING CLAIMS Individual fails in large mis-selling claim The application of COB suitability requirements to leverage Interest rate hedging products claims Topping up FOS awards through … Read more

Court of Appeal allows LIBOR claims to proceed

The Court of Appeal has allowed parties to two claims against LIBOR panel banks to amend their pleadings to include allegations that the banks made implied representations relating to the accuracy of LIBOR. In doing so, the Court held that the amendments were sufficiently arguable so as to have a real prospect of success. This … Read more

Private LIBOR claims – an uphill battle for claimants

The ongoing regulatory investigations into the manipulation of LIBOR have prompted much speculation about the possibility of claimants bringing private law actions against banks based on the regulators’ findings. In the first cases to come before the UK courts, the Court of Appeal has recently granted permission to appeal two High Court decisions as to … Read more

UK Supreme Court clarifies the “balance-sheet” insolvency test

BNY Corporate Trustee Services Limited v Eurosail-UK 2007-3BL PLC [2013] UKSC 28 The Supreme Court has delivered a judgment providing welcome clarification on the construction and effect of section 123(2) of the Insolvency Act 1986 (the “balance-sheet” insolvency test) and its interaction with section 123(1)(e) of the Act (the “cash flow” insolvency test).The decision is relevant not just to creditors presenting winding-up petitions in respect of insolvent debtors but also to the wider banking industry, … Read more

Business common sense arguments fail to save unclear drafting: the Court of Appeal (UK) upholds High Court decision on loan repayment fees

BMA Special Opportunity Hub Fund Ltd & Ors v African Minerals Finance Ltd [2013] EWCA Civ 416 (read the judgment here) The Court of Appeal has upheld a High Court decision construing a finance agreement such that a borrower’s prepayment of a loan facility following a voluntary refinancing with another lender did not trigger a prepayment fee … Read more

Banking Litigation Update

Welcome to our banking litigation update where we consider important decisions for financial institutions over the first half of 2012: The 1992 ISDA Master Agreement: Court of Appeal provides clarity on payment obligations owed to insolvent counterparties Lomas v JFB Firth Rixson Inc [2012] EWCA Civ 419 The Lehman client money judgment: Supreme Court upholds Court … Read more