Paul Sinclair (leading Daniel Khoo of 4 Pump Court) acted for Royal Bank of Scotland in its successful defence of a claim by the private jet charter company, London Executive Airline Ltd, arising out of the alleged mis-sale of two interest rate hedging products.
Following an 11 day trial in November 2017, Mrs Justice Rose handed down judgment on 22 January 2018 dismissing the £3.8 million claim and rejecting all of LEA’s claims. The Judge rejected any suggestion that there was an advisory duty, that advice had been given, that there was any breach of the so-called ‘mezzanine duty’ or that any misrepresentations had been made or relied on. Further, the claim was one of the first to consider in detail the obligations of a bank to disclose its internal credit line (the CLU). The Judge rejected LEA’s claims that the bank was obliged to disclose the CLU.
The Court also expressed the view that LEA had sued the wrong party as the contracts were with National Westminster Bank plc (not RBS) and RBS’s salesperson was not acting for RBS in circumstances where the ultimate contract was entered into with a different party.
A full copy of the judgment can be found here