A Court of Appeal panel has dealt a blow to Barclays in a unanimous judgment today. The judgment concerned the claimants’ allegation in both the Guardian Care Homes and Unitech Limited cases, that where interest rate swaps products relied on the LIBOR rate, fraudulent misrepresentation had occurred.
The allegations can now proceed to be aired at trial, currently due to start and run for six weeks from April 2014.
In the judgment, Longmore LJ wrote: ‘The banks did propose the use of LIBOR and it must be arguable that, at the very least, they were representing that their own participation in the setting of the rate was an honest one. It is, to my mind, surprising that the banks do not appear to be prepared to accept that even that limited proposition is arguable.’
Guardian Care Homes’ lead partner, Philip Young of Cooke, Young & Keidan, said: ‘This is an excellent result for Guardian Care Homes, although not surprising. This is a David v Goliath fight and this unmeritorious appeal has been a distraction. It must be right that the trial judge can now decide in open court all the issues including the allegations of fraudulent misrepresentation by Barclays.’
Barclays is advised by Clifford Chance. Stephenson Harwood acted for Unitech. Allen & Overy and Freshfields Bruckhaus Deringer advised Deutsche Bank parties who have related court actions.