Litigation Recent Decisions 21/05/96

Bank's claim against a local authority over rate swaps

Kleinwort Benson v Birmingham City Council (1996).

CA (Evans LJ, Saville LJ and Morritt LJ) 9/5/96.

Summary: Bank's claim to recover money lent to a local authority for ultra vires rate swap transactions upheld on the local authority's appeal.

Birmingham City Council's appeal against the judgment on the plaintiff's claim to recover £353,321 as the net amount of payments made by it to the appellants under a rate swaps contract dated 29/9/83 which ran until September 1987.