Property Alliance Group Ltd v The Royal Bank of Scotland Plc

Property Alliance Group Ltd v The Royal Bank of Scotland Plc

RBS did not owe PAG a duty to disclose internal break cost estimates or provide worked scenarios; no actionable misrepresentation was made regarding the swaps being 'hedges'; RBS did not make false implied representations regarding manipulation of GBP LIBOR; and RBS was entitled to commission and charge for the 2013 valuation under the facility agreement. The appeal was dismissed in its entirety.

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
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Interest Rate Swaps, Misrepresentation, Negligent Misstatement, LIBOR Manipulation, Contractual Discretion, Implied Terms
Banking Law Contract Law Tort Law Interest Rate Swaps Misrepresentation Negligent Misstatement LIBOR Manipulation Contractual Discretion +1 more

Case Brief

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Parties

Property Alliance Group Limited

Appellant/claimant

The Royal Bank of Scotland PLC

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether RBS owed a duty of care to PAG to disclose potential break costs or provide worked break cost scenarios prior to entering into swaps
  2. 2 Whether RBS made actionable misrepresentations regarding the swaps being 'hedges'
  3. 3 Whether RBS made implied misrepresentations regarding the integrity of LIBOR and its own conduct

Ratio Decidendi

RBS did not owe PAG a duty to disclose internal break cost estimates or provide worked scenarios; no actionable misrepresentation was made regarding the swaps being 'hedges'; RBS did not make false implied representations regarding manipulation of GBP LIBOR; and RBS was entitled to commission and charge for the 2013 valuation under the facility agreement. The appeal was dismissed in its entirety.

Court Disposition

Appeal dismissed