Litigation alert: Green and Rowley — the final chapter
In July 2013, the first English swaps mis-selling case reached the Court of Appeal. The appellants, John Green and Paul Rowley (GR), had hoped to overturn an earlier High Court judgment that had dismissed their claim in its entirety. Their appeal failed. The Court of Appeal has just published its written judgment.
GR had a pre-existing loan liability of £1.5m with Royal Bank of Scotland (RBS). Keen to hedge against movements in the interest rate, in May 2005 they entered into a 10-year base-rate swap with RBS for a notional amount of £1.5m at a rate of 4.83 per cent (the prevailing base rate at that time was 4.75 per cent).
Initially the swap worked well for GR and they were ‘in the money’ as base rates exceeded the swap rate, but when interest rates plummeted in 2008 they fared very badly. Wanting to restructure their partnership, they enquired about the cost of terminating the swap in 2009, at which point they learned that the break costs would amount to £138,650…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
DLA Piper’s privacy experts have compiled a list of dos and don’ts for addressing privacy compliance in M&A transactions.
On 22 July 2014, a new law amending the Law on Data Protection and Law on Information was signed off by the Russian president and thus was officially adopted.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions