Al Sulaiman v Credit Suisse Securities (Europe) Ltd & Anor [2013] EWHC 400 (Comm) (01 March 2013)

Al Sulaiman v Credit Suisse Securities (Europe) Ltd & Anor [2013] EWHC 400 (Comm) (01 March 2013)

The defendants took reasonable steps to ensure the claimant understood the risks of leveraged structured notes, including margin calls and their consequences. The claimant was not a naïve investor, had sufficient assets, and was aware of the risks. The documentary evidence and inherent commercial probabilities outweighed the claimant's unreliable and dishonest testimony. No breach of statutory or common law duty was established.

Citation
[2013] EWHC 400 (Comm)
Parties
Claimant: Basma Al Sulaiman; 1st Defendant: Credit Suisse Securities (Europe) Limited; 2nd Defendant: Plurimi Capital LLP
Jurisdiction
England and Wales
Judgment Date
01 March 2013
Procedural Posture
Commercial Court Claim for Breach of Statutory Duty and Professional Negligence / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Breach of Statutory Duty, Suitability of Investment Advice, Explanation of Investment Risks, Margin Calls, Leverage, Structured Notes, Financial Services and Markets Act 2000, FSA Conduct of Business Rules
Financial Services Law Professional Negligence Contract Law Tort Law Breach of Statutory Duty Suitability of Investment Advice Explanation of Investment Risks Margin Calls +4 more

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Parties

Basma Al Sulaiman

Claimant

Credit Suisse Securities (Europe) Limited

1st Defendant

Plurimi Capital LLP

2nd Defendant

Procedural Posture

Commercial Court Claim for Breach of Statutory Duty and Professional Negligence / Final Judgment After Trial

Legal Issues

  1. 1 Did the defendants take reasonable steps to ensure the claimant understood the risks of leveraged structured notes, including margin calls and consequences of failing to meet them?
  2. 2 Were the investments recommended suitable for the claimant?
  3. 3 Did the defendants breach statutory or common law duties in their advice and explanations?

Ratio Decidendi

The defendants took reasonable steps to ensure the claimant understood the risks of leveraged structured notes, including margin calls and their consequences. The claimant was not a naïve investor, had sufficient assets, and was aware of the risks. The documentary evidence and inherent commercial probabilities outweighed the claimant's unreliable and dishonest testimony. No breach of statutory or common law duty was established.

Court Disposition

Claim dismissed

Orders

  • Claimant's claim against both defendants is dismissed
  • Claimant to pay defendants' costs