Property Alliance Group Ltd v The Royal Bank of Scotland Plc [2018] EWCA Civ 355 (02 March 2018)

Property Alliance Group Ltd v The Royal Bank of Scotland Plc [2018] EWCA Civ 355 (02 March 2018)

RBS did not owe PAG a duty of care to disclose CLU or break cost scenarios; no negligent misstatement or actionable misrepresentation occurred; no fraudulent LIBOR representations were made; RBS's contractual right to valuation was not fettered or breached.

Citation
[2018] EWCA Civ 355
Parties
Appellant/claimant: Property Alliance Group Limited; Respondent/defendant: The Royal Bank of Scotland PLC
Jurisdiction
England and Wales
Judgment Date
02 March 2018
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment
Outcome
Appeal dismissed
Legal Topics
Interest Rate Swaps, Misrepresentation, Negligent Misstatement, LIBOR Manipulation, Duty of Care, Break Costs, Valuation Rights
Banking Law Contract Law Tort Law Interest Rate Swaps Misrepresentation Negligent Misstatement LIBOR Manipulation Duty of Care +2 more

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Parties

Property Alliance Group Limited

Appellant/claimant

The Royal Bank of Scotland PLC

Respondent/defendant

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment

Legal Issues

  1. 1 Whether RBS owed PAG a duty of care in tort to disclose break cost scenarios or internal credit line utilisation (CLU) figures prior to entering swaps
  2. 2 Whether RBS made negligent misstatements or misrepresentations regarding the swaps as 'hedges'
  3. 3 Whether RBS made fraudulent implied representations about LIBOR and its setting

Ratio Decidendi

RBS did not owe PAG a duty of care to disclose CLU or break cost scenarios; no negligent misstatement or actionable misrepresentation occurred; no fraudulent LIBOR representations were made; RBS's contractual right to valuation was not fettered or breached.

Court Disposition

Appeal dismissed

Orders

  • No rescission of swaps
  • No damages awarded