23rd June 2017
MSI's Northern UK law member Myerson Solicitors have been in the Court of Appeal taking on two major high street banks in cutting-edge litigation case brought by one of its property investment clients, CGL Group Limited, against the Royal Bank of Scotland and NatWest for the mis-selling of two interest rate hedging products (IRHPs) in 2006 and 2007.
The appeal focused on the question of whether the bank negligently conducted its IRHP redress scheme. When granting CGL permission to appeal, Lord Justice Floyd recognised not only that CGL’s grounds of appeal have real prospect of success but also that “there is a wider question of principle at stake amounting to a compelling reason to hear the appeal.” The Court of Appeal’s decision in this case will shape the future in terms of how other IRHP mis-selling cases will be decided in Courts across the country.
Those who have followed the IRHP mis-selling scandal throughout the years will recall that in 2012, the FCA identified failings in the way some high street banks (of which the Royal Bank of Scotland and NatWest were two) had mis-sold IRHPs. In 2013, the redress scheme was announced and since then, the various high street banks involved have assessed over 18,000 claims and paid over £2.2 billion in compensation. However, the battle is far from over and CGL’s case against the RBS and NatWest is just one of many cases which is progressing through the Courts.
Jonathan Hassall, a Partner at Myerson Solicitors, and a specialist in banking litigation claims said: “When the IRHP redress scheme was announced in 2012 the banks told their customers they did not need to instruct lawyers to assist with complaints. The banks then proceeded to under settle its customers’ claims and played hardball with its customers whilst instructing their own expensive city lawyers. If the Court of Appeal decides that the Royal Bank of Scotland and NatWest negligently conducted its IRHP redress scheme then this is going to have a significant impact on not just CGL’s claim but other banking customers who are battling the banks through the Courts. The court’s decision could potentially open the floodgates for other commercial borrowers who went through the redress scheme to bring a claim.”
Cosmo Lloyd, the Managing Director of CGL Group said: “2008 saw 25 years of my business life come crashing down due to RBS’s actions. As time went on business became more and more difficult with increased pressure from RBS’s Global Restructuring Group and West Register. With the help of my legal team, I am hopeful that the Court of Appeal’s decision will bring good news for my company and me as well as all the other customers who continue to battle with the banks over their mistreatment.”
Myerson’s banking litigation team is made up of Jonathan Hassall, a Partner, and Vicky Biggs, a Solicitor. Richard Edwards QC of 3 Verulam Buildings in London and Steve McGarry of St John’s Buildings in Manchester represented CGL in the Court of Appeal. The Court of Appeal’s decision in this case is expected in due course.
Myerson was founded in Manchester, Cheshire over 30 years ago and is a leading, full service commercial and private client law firm providing bespoke legal advice to businesses and affluent individuals across Manchester, Cheshire, the UK and beyond.
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