Allianz Global Investors GMBH & Ors v Barclays Bank PLC & Ors

Allianz Global Investors GMBH & Ors v Barclays Bank PLC & Ors

Redemption payments at lower NAV are collateral benefits arising from independent contracts between funds and investors, not direct mitigation of loss. Funds retain the cause of action for losses suffered, and redeeming investors do not acquire a separate actionable claim. The reflective loss, trust, and partnership principles bar claims by redeeming investors. EU law does not override these principles post-Brexit. The Banks' avoided loss/pass-on defence is struck out.

Parties
Claimants/appellants: Allianz Global Investors GmbH and Others; Defendant/respondent: Barclays Bank PLC; Defendant/respondent: Citibank N.A.; Defendant/respondent: Citigroup Inc.; Defendant/respondent: HSBC Bank PLC; Defendant/respondent: JP Morgan Chase Bank N.A.; Defendant/respondent: JP Morgan Chase & Co; Defendant/respondent: NatWest Markets PLC; Defendant/respondent: UBS AG
Jurisdiction
England and Wales
Judgment Date
23 March 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Strike Out Application
Outcome
Appeal allowed; Banks' avoided loss/pass-on defence struck out.
Legal Topics
Reflective Loss, Pass on Defence, Collateral Benefit, Mitigation of Loss, Standing to Sue, EU Law Effectiveness, Damages Quantification
Competition Law Company Law Trust Law Partnership Law Reflective Loss Pass on Defence Collateral Benefit Mitigation of Loss +3 more

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Parties

Allianz Global Investors GmbH and Others

Claimants/appellants

Barclays Bank PLC

Defendant/respondent

Citibank N.A.

Defendant/respondent

Citigroup Inc.

Defendant/respondent

HSBC Bank PLC

Defendant/respondent

JP Morgan Chase Bank N.A.

Defendant/respondent

JP Morgan Chase & Co

Defendant/respondent

NatWest Markets PLC

Defendant/respondent

UBS AG

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Strike Out Application

Legal Issues

  1. 1 Whether investment funds' losses are avoided or passed on to investors via redemption at lower NAV
  2. 2 Whether redeeming investors acquire a cause of action for diminution in redemption value
  3. 3 Whether the reflective loss principle, trust principle, and partnership principle bar claims by redeeming investors

Ratio Decidendi

Redemption payments at lower NAV are collateral benefits arising from independent contracts between funds and investors, not direct mitigation of loss. Funds retain the cause of action for losses suffered, and redeeming investors do not acquire a separate actionable claim. The reflective loss, trust, and partnership principles bar claims by redeeming investors. EU law does not override these principles post-Brexit. The Banks' avoided loss/pass-on defence is struck out.

Court Disposition

Appeal allowed; Banks' avoided loss/pass-on defence struck out.

Orders

  • Banks' allegation that Funds' losses have been avoided or passed on by redemption of investments is struck out.
  • No direct cause of action for redeeming investors for diminution in redemption value.