On 7 October 2024, the Court of Appeal handed down its judgment in Elliott Associates L.P. and Elliott International L.P. v London Metal Exchange and LME Clear [2024] EWCA Civ 1168.
The Court of Appeal roundly dismissed Elliott’s appeal from the Divisional Court’s rejection of claims brought by Elliott and another nickel trader against the LME and its clearing house, LME Clear. The claims arose out of events on 8 March 2022, when an unprecedented spike in the price of nickel futures on the LME led to the suspension of trading in nickel and the cancellation of nickel trades worth an estimated $12 billion. As a recognised investment exchange which exercises regulatory functions under the Financial Services and Markets Act 2000, the LME is amenable to judicial review and subject to obligations under the Human Rights Act. Before the Divisional Court, the claimants sought judicial review of the LME’s cancellation decision, and damages against the LME under the Human Rights Act, arguing that the decision to cancel trades was ultra vires, procedurally unfair and irrational and that it also amounted to an unlawful interference with their property rights. The judicial review was heard in June 2023 and featured as one of The Lawyer’s Top 20 cases of 2023, culminating in the dismissal of the claims in their entirety.
The Court of Appeal dismissed the appeal from that decision, finding that the cancellation decision was lawful and that, whilst (contrary to the finding of the Divisional Court on this point) Elliott did have possessions arising from its trading activity on the morning of 8 March 2022, there was no unlawful interference with those possessions so as to give rise to a claim in damages under the Human Rights Act.
The judgment is available here.
Rebecca Loveridge acted for the LME and LME Clear, together with Jonathan Crow CVO KC, James McClelland KC and Alastair Richardson, instructed by Hogan Lovells International LLP.
