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 is a relatively low threshold and, whilst the parties will be allowed to plead the LIBOR allegations, they are likely to face some significant hurdles at trial (as set out in our earlier briefing following the first instance decisions, here). However, if the Court of Appeal decision stands the test of a potential appeal to the Supreme Court, banks can expect to have to argue such issues concerning whether implied misrepresentations were made, and (if so) what was their scope, at trial rather than dismiss them summarily. To read our briefing, click here.