Springwell – a source of relief for financial institutions

The Court of Appeal’s decision earlier this week in Springwell v JP Morgan Chase Bank and ors [2010] EWCA Civ 1221 is the latest in a series of English judgments which have seen sophisticated investors struggle to make good damages claims against financial institutions in relation to poorly performing investments. In the majority of these cases, the investors have sought to rely on the existence of an express or implied misrepresentation which is alleged to have been made by the financial institution. The cases demonstrate that the English courts will seek to uphold market standard contractual documentation used by financial institutions in such transactions which seeks to limit the circumstances in which representations can be said to arise and which aims to operate as a contractual estoppel preventing investors from being able to pursue such claims. Continue reading