SRM Global Master Fund Lp & Ors, R. (On the Applications of) v The Commissioners of Her Majesty's Treasury

SRM Global Master Fund Lp & Ors, R. (On the Applications of) v The Commissioners of Her Majesty's Treasury

The statutory assumptions for compensation—requiring valuation as if all public financial support had been withdrawn and Northern Rock was not a going concern—were fair and proportionate. The Claimants had no contractual or legitimate expectation of continued support, and the scheme did not impose an individual and excessive burden. The legislative judgment was not manifestly without reasonable foundation and was within the State's margin of appreciation. There was no breach of A1P1.

Parties
First Claimant: SRM Global Master Fund LP; Second Claimant: RAB Special Situations (Master) Fund Limited; Third Claimants: Dennis Grainger and others; Defendants: The Commissioners of Her Majesty’s Treasury; Interested Party: Legal & General Investment Management Limited
Jurisdiction
England and Wales
Judgment Date
13 February 2009
Procedural Posture
Judicial Review / Judgment
Outcome
Claims for judicial review dismissed
Legal Topics
Compulsory Acquisition, Compensation for Expropriation, Margin of Appreciation, Legitimate Expectation, Procedural Fairness, State Aid, Nationalisation
Constitutional Law Human Rights Law Banking Law Administrative Law Compulsory Acquisition Compensation for Expropriation Margin of Appreciation Legitimate Expectation +3 more

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Parties

SRM Global Master Fund LP

First Claimant

RAB Special Situations (Master) Fund Limited

Second Claimant

Dennis Grainger and others

Third Claimants

The Commissioners of Her Majesty’s Treasury

Defendants

Legal & General Investment Management Limited

Interested Party

Procedural Posture

Judicial Review / Judgment

Legal Issues

  1. 1 Whether the statutory compensation scheme for former shareholders of Northern Rock plc is compatible with Article 1 of the First Protocol to the European Convention on Human Rights (A1P1)
  2. 2 Whether the statutory assumptions for valuation are fair and proportionate under A1P1
  3. 3 Whether there was a legitimate or reasonable expectation of continued public financial support

Ratio Decidendi

The statutory assumptions for compensation—requiring valuation as if all public financial support had been withdrawn and Northern Rock was not a going concern—were fair and proportionate. The Claimants had no contractual or legitimate expectation of continued support, and the scheme did not impose an individual and excessive burden. The legislative judgment was not manifestly without reasonable foundation and was within the State's margin of appreciation. There was no breach of A1P1.

Court Disposition

Claims for judicial review dismissed

Orders

  • The claims for judicial review are dismissed.