header-logo header-logo

Know your limits

27 November 2014 / Simon Duncan
Categories: Features , Banking , Commercial , Litigation trends
printer mail-detail

In the first of a series of articles on banking litigation, Simon Duncan discusses how limitation can be used to counter swaps mis-selling claims

Many claimants are seeking damages for having been “mis-sold” an interest rate hedging product. However, limitation, if raised, can form an absolute defence to such claims. 

In Kays Hotels Ltd v Barclays Bank Plc [2014] EWHC 1927 (Comm) the claimant was faced with this difficulty. The claimant had entered into an interest hedging product with a “collar” in December 2005. The claimant considered that this product had been mis-sold, more particularly that the bank was in breach of contract, breach of statutory duty and in breach of a common law duty of care (the “negligence claim”) having “mis-sold” the product.

Facts

The proceedings were issued on 8 November 2012. The bank’s position from the outset was that the claim was time-barred. The bank applied to have the claim struck out or otherwise summarily dismissed. The claimant accepted that the breach of contract and the breach of

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ
back-to-top-scroll