Marme Inversiones 2007 SL v Natwest Markets Plc & Ors

Marme Inversiones 2007 SL v Natwest Markets Plc & Ors

No actionable implied representations regarding EURIBOR integrity or honesty were made by RBS or the Non-RBS Banks; even if such representations were implied, Marme did not have the requisite awareness or reliance at the time of contracting. The swaps formed an indivisible part of the overall transaction and Marme affirmed the swaps after knowledge of alleged misconduct. No agency relationship existed between RBS and the Non-RBS Banks for the purposes of making representations. The swaps were validly terminated by the Defendants per contract, and Marme is not entitled to rescission or damages.

Parties
Claimant: Marme Inversiones 2007 SL; First Defendant: NatWest Markets PLC; Second Defendant: HSH Nordbank AG; Third Defendant: Bayerische Landesbank; Fourth Defendant: ING Bank NV; Fifth Defendant: Caixabank SA
Jurisdiction
England and Wales
Judgment Date
25 February 2019
Procedural Posture
Commercial Court Civil Claim / Final Judgment After Full Trial
Outcome
Claim dismissed; Defendants’ counterclaims/declaration claims allowed.
Legal Topics
Misrepresentation, Fraud, Agency, Rescission, Damages, Declaratory Relief, Interest Rate Swaps, Benchmark Manipulation
Contract Law Banking and Finance Tort Law Misrepresentation Fraud Agency Rescission Damages +3 more

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Parties

Marme Inversiones 2007 SL

Claimant

NatWest Markets PLC

First Defendant

HSH Nordbank AG

Second Defendant

Bayerische Landesbank

Third Defendant

ING Bank NV

Fourth Defendant

Caixabank SA

Fifth Defendant

Procedural Posture

Commercial Court Civil Claim / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether RBS and/or its employee made implied misrepresentations regarding EURIBOR integrity and honesty in the context of interest rate swaps;
  2. 2 Whether such representations were false and/or fraudulent;
  3. 3 Whether Marme relied on such representations;

Ratio Decidendi

No actionable implied representations regarding EURIBOR integrity or honesty were made by RBS or the Non-RBS Banks; even if such representations were implied, Marme did not have the requisite awareness or reliance at the time of contracting. The swaps formed an indivisible part of the overall transaction and Marme affirmed the swaps after knowledge of alleged misconduct. No agency relationship existed between RBS and the Non-RBS Banks for the purposes of making representations. The swaps were validly terminated by the Defendants per contract, and Marme is not entitled to rescission or damages.

Court Disposition

Claim dismissed; Defendants’ counterclaims/declaration claims allowed.

Orders

  • Marme’s claim for rescission and/or damages is dismissed.
  • Declarations granted to RBS and the Non-RBS Banks that the swaps were validly terminated and that Marme is liable for the specified termination sums plus interest and indemnity for costs.