No5 Chambers

Is this the end for swap mis-selling claims? The Appeal in Green & Rowley v RBS

By Philip Mantle

One of the difficulties encountered when advising clients as to the merits of their claim that they have been mis-sold an interest rate hedging product (IRHP), usually an interest rate swap, is the paucity of decided case law concerning the sale of such products.

There have been only two reported decisions concerning the (mis) selling of interest rate swaps: the Scottish case of Grant Estates Ltd v RBS [2012] CSOH 133 and the solitary English decision of Green & Rowley v RBS [2012] EWHC 3661. In both cases, the claims of mis-selling against the banks were dismissed.

Green was subsequently taken upon appeal, heard in July 2013, and the findings of the court at first instance were upheld. Although the decision was known in July, the Court of Appeal has only recently handed down formal judgment on 9 October 2013. As this decision represents the solitary appellate authority within the field of swap mis-selling, the formal reasoning behind the court’s judgment has been keenly awaited by both claimant and defendants alike…

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