HMG Investment Holdings Ltd v National Westminster Bank Plc

HMG Investment Holdings Ltd v National Westminster Bank Plc

The alleged Decreased Risk Representation was not made as pleaded by HMG. The conversation, when considered as a whole, did not amount to a false representation that the Geared Collar exposed HMG to less risk overall. The Bank's statements were not negligent. The claim fails in law.

Parties
Claimant: HMG Investment Holdings Limited; Defendant: National Westminster Bank PLC
Jurisdiction
England and Wales
Judgment Date
17 December 2018
Procedural Posture
Commercial Claim / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Misrepresentation, Negligence, Interest Rate Hedging Instruments, Financial Derivatives
Banking Law Contract Law Tort Law Misrepresentation Negligence Interest Rate Hedging Instruments Financial Derivatives

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Parties

HMG Investment Holdings Limited

Claimant

National Westminster Bank PLC

Defendant

Procedural Posture

Commercial Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the Bank made a false representation (the 'Decreased Risk Representation') to HMG regarding the risk profile of the Geared Collar compared to the Original Hedging Instruments
  2. 2 Whether the Bank was negligent in its explanation or advice regarding the Geared Collar

Ratio Decidendi

The alleged Decreased Risk Representation was not made as pleaded by HMG. The conversation, when considered as a whole, did not amount to a false representation that the Geared Collar exposed HMG to less risk overall. The Bank's statements were not negligent. The claim fails in law.

Court Disposition

Claim dismissed

Orders

  • The claim is dismissed.