Kallakis v AIB Group Plc & Ors

Kallakis v AIB Group Plc & Ors

The court held that AIB had not established that the claims in negligent misrepresentation, assignment of the Trustee's personal claim, and derivative claim of the Trustee's personal claim had no real prospect of success, and those claims should not be struck out or subject to summary judgment. Claims based on derivative claims of the SPVs and certain personal claims of the claimant were struck out. The exception to the reflective loss rule may apply due to the impossibility caused by AIB's conduct.

Parties
Claimant: Michalis S. A. Kallakis; First Defendant: AIB Group PLC; Second Defendant: AIB Group (UK) PLC; Third Defendant: Achilleas M. Kallakis; Fourth Defendant: Michael K. Becker; Fifth Defendant: Allied Irish Bank PLC
Jurisdiction
England and Wales
Judgment Date
28 February 2020
Procedural Posture
Commercial Court Civil Claim / Summary Judgment And/or Strike Out Application
Outcome
Application for summary judgment/strike out granted in part and refused in part; Variation Application granted.
Legal Topics
Derivative Actions, Reflective Loss, Misrepresentation, Mortgagee's Duty of Care, Assignment of Claims, Summary Judgment, Strike Out, Trustee Duties
Trust Law Company Law Banking Law Civil Procedure Derivative Actions Reflective Loss Misrepresentation Mortgagee's Duty of Care +4 more

Case Brief

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Parties

Michalis S. A. Kallakis

Claimant

AIB Group PLC

First Defendant

AIB Group (UK) PLC

Second Defendant

Achilleas M. Kallakis

Third Defendant

Michael K. Becker

Fourth Defendant

Allied Irish Bank PLC

Fifth Defendant

Procedural Posture

Commercial Court Civil Claim / Summary Judgment And/or Strike Out Application

Legal Issues

  1. 1 Whether the claimant has a real prospect of success on claims in misrepresentation, sale without legal authority, and undervalue sale against the bank
  2. 2 Whether claims based on derivative actions or assignments are maintainable given the status of the SPVs and Trustee
  3. 3 Whether the reflective loss rule bars the claims

Ratio Decidendi

The court held that AIB had not established that the claims in negligent misrepresentation, assignment of the Trustee's personal claim, and derivative claim of the Trustee's personal claim had no real prospect of success, and those claims should not be struck out or subject to summary judgment. Claims based on derivative claims of the SPVs and certain personal claims of the claimant were struck out. The exception to the reflective loss rule may apply due to the impossibility caused by AIB's conduct.

Court Disposition

Application for summary judgment/strike out granted in part and refused in part; Variation Application granted.

Orders

  • Claims based on derivative claim of the SPVs (Basis 3B and 4) struck out.
  • Claim based on fraudulent misrepresentation in claimant's personal capacity (Basis 1) struck out.