Sivagnanam v Barclays Bank Plc (Rev 1) [2015] EWHC 3985 (Comm) (04 December 2015)

Sivagnanam v Barclays Bank Plc (Rev 1) [2015] EWHC 3985 (Comm) (04 December 2015)

The claim was dismissed because the claimant, as a shareholder and director, was not within the class of persons protected by the FCA rules, the losses claimed were reflective of company losses, and thus not recoverable by the claimant personally. There was no breach of duty owed to the claimant under FSMA or the rules, and the principle of reflective loss applied. Additionally, most claims were time-barred.

Citation
[2015] EWHC 3985 (Comm)
Parties
Claimant/respondent: Mr Suresh Sivagnanam; Defendant/applicant: Barclays Bank PLC
Jurisdiction
England and Wales
Judgment Date
04 December 2015
Procedural Posture
Commercial Claim (mis Selling of Financial Products) / Application for Strike Out And/or Summary Judgment
Outcome
Claim dismissed by summary judgment.
Legal Topics
Reflective Loss, Breach of Statutory Duty, Mis Selling of Financial Products, Summary Judgment, Strike Out Applications, Limitation of Actions
Financial Services Law Company Law Civil Procedure Reflective Loss Breach of Statutory Duty Mis Selling of Financial Products Summary Judgment Strike Out Applications +1 more

Case Brief

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Parties

Mr Suresh Sivagnanam

Claimant/respondent

Barclays Bank PLC

Defendant/applicant

Procedural Posture

Commercial Claim (mis Selling of Financial Products) / Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether a shareholder can claim under FSMA s138D for losses reflective of company losses
  2. 2 Whether the claimant is within the class protected by the relevant FCA rules
  3. 3 Whether the claim is barred by the principle of reflective loss

Ratio Decidendi

The claim was dismissed because the claimant, as a shareholder and director, was not within the class of persons protected by the FCA rules, the losses claimed were reflective of company losses, and thus not recoverable by the claimant personally. There was no breach of duty owed to the claimant under FSMA or the rules, and the principle of reflective loss applied. Additionally, most claims were time-barred.

Court Disposition

Claim dismissed by summary judgment.

Orders

  • Summary judgment granted in favour of Barclays Bank PLC.
  • Claim struck out.