Court of Appeal confirms funders’ adverse costs liability not limited to amount of funding provided: Arkin “cap” not a binding rule

A decision handed down by the Court of Appeal today has dismissed the suggestion that there is a fixed limit on a commercial litigation funder’s liability for the other side’s costs when a claim it has funded fails: Chapelgate Master Fund Opportunity Ltd v Money [2020] EWCA Civ 246. This is a significant decision and represents … Read more

BANKING LITIGATION PODCAST EPISODE 15: MONTHLY UPDATE – FEBRUARY 2020

We have just released our monthly update podcast, in which we discuss and debate the key recent judgments likely to be of interest to financial institutions. This episode is hosted by John Corrie, a partner in our banking litigation team, who is joined by Ceri Morgan and special guest Daniel May. You can also listen … Read more

Impact of Court of Appeal’s privilege decision in Sports Direct v FRC for the financial services sector

A judgment handed down yesterday by the Court of Appeal considering the question of privilege in a regulatory context represents good news for financial institutions: Sports Direct International plc v The Financial Reporting Council [2020] EWCA Civ 177. The Court of Appeal considered the situation where a regulated person was being investigated by its regulator … Read more

High Court upholds financial institution restructuring unit’s exercise of its powers under facility agreement following borrower default, finding there was no “relational contract” and rejecting claims for intimidation and economic duress

The High Court has dismissed the most recent claim to reach trial arising from the actions taken by a lending bank’s restructuring unit following a borrower’s default under a facility agreement during the global financial crisis. The court rejected all claims that the bank failed to discharge its duty to provide lending services with reasonable … Read more

ISDA to re-consult on pre-cessation fallbacks: litigation risk for legacy LIBOR contracts

The International Swaps and Derivatives Association (“ISDA”) announced yesterday that it will re-consult on how to implement pre-cessation fallbacks in derivatives contracts. This is an important development for financial institutions with large books of legacy LIBOR-linked products. The announcement follows an earlier consultation on pre-cessation fallbacks last year, which failed to achieve market consensus on … Read more