Edward Astle v CBRE: Application of the SAAMCO principle to negligent valuations in information memoranda

The recent case of Edward Astle & Ors v CBRE Ltd (and related actions) [2015] EWHC 3189 (Ch) considers South Australia Asset Management Corp v York Montague Ltd [1997] A.C. 191 (“SAAMCo“) in a novel context. The Defendants allegedly included a negligent property valuation in an information memorandum, promoting an investment in a property-owning trust structure. They applied for summary judgment … Read more

Harlequin Property (SVG) Ltd & Anor v Wilkins Kennedy: Court orders disclosure of confidential SFO and client documents

The recent case management decision in Harlequin Property (SVG) Ltd and Another v Wilkins Kennedy[2015] EWHC 3050 (TCC) considered an application by the Defendant to withhold documents from inspection on the basis of confidentiality. The documents in question fell into two categories, namely: (i) documents created in the course of an investigation into the Claimants by the … Read more

Sharp & Ors v Blank & Ors: Directors’ duties owed to company not shareholders when seeking shareholder approval for transaction

In a recent decision in the Lloyds shareholder litigation, the High Court has struck out a number of aspects of the claims against the defendant directors based on alleged fiduciary duties to shareholders: Sharp & Others v Blank & Others [2015] EWHC 3220 (Ch). Herbert Smith Freehills is acting for Lloyds and the director defendants. The decision … Read more

FCA v Da Vinci: FSA uses court proceedings for the first time to obtain both financial penalties and permanent injunctions against a firm in a case of alleged market abuse

In Financial Conduct Authority v Da Vinci Invest and Others [2015] EWHC 2401 (Ch), the High Court granted the Financial Conduct Authority (the “FCA“) permanent injunctions and financial penalties for market abuse against two firms and three individuals. All but one of the Defendants was incorporated or resident abroad.  This decision represents the first time the FCA has … Read more

Supreme court clarifies scope of “Assets” covered by a Freezing Order

In a unanimous decision, the Supreme Court has confirmed that the right to draw down under loan agreements is caught by the expanded definition of “asset” contained in the current standard Commercial Court form of freezing order which includes “any asset which it (the respondent) has the power, directly or indirectly, to dispose of or … Read more

Jurisdiction clause in derivatives contract interpreted as granting exclusive jurisdiction to English courts

The High Court has interpreted a jurisdiction clause as granting exclusive jurisdiction to the English courts, despite the absence of the word “exclusive” in the clause in question: Global Maritime Investments Cyprus Limited v O.W. Supply & Trading A/S [2015] EWHC 2690 (Comm). A well drafted jurisdiction clause should make clear that exclusive jurisdiction is … Read more

CBRE Loan Servicing v Gemini: High Court applies key principles of contractual interpretation to CMBS documentation

CBRE Loan Servicing Limited v Gemini (Eclipse 2006-3) plc & Ors [2015] EWHC 2769 (Ch) concerns the construction of contractual provisions in a complex commercial mortgage backed securities (“CMBS“) structure. The Court had to determine, looking at the suite of documentation, how funds were to be classified: as “principal” or “interest”, where those terms were not … Read more

Worthing v Lloyds: High Court finds no continuing contractual duty to correct investment advice

The recent decision of the High Court in Worthing and Another v Lloyds Bank plc [2015] EWHC 2836 (QB) provides helpful clarification for financial institutions as to their duties when providing regulated investment advice under the Financial Services and Markets Act 2000 (“FSMA“) and conducting subsequent reviews of that advice. In this case, the Court held that the … Read more