Kaupthing Singer & Friedlander Ltd v UBS AG

Kaupthing Singer & Friedlander Ltd v UBS AG

KSF is estopped by convention and acquiescence from claiming the US$65 million from UBS because both parties shared the assumption that the payment obligation was discharged, UBS acted to its detriment in reliance on this assumption, and it would be unjust to allow KSF to resile from it. The mistaken payment and subsequent conduct closed the FX trade as between the parties. The application to amend the pleadings was refused as being too late and insufficiently particularised.

Parties
Claimant: Kaupthing Singer & Friedlander Limited (in administration); Defendant: UBS AG
Jurisdiction
England and Wales
Judgment Date
18 July 2014
Procedural Posture
Commercial Claim (contract/dispute) / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Estoppel by Convention, Estoppel by Acquiescence, Waiver, Accord and Satisfaction, ISDA Master Agreement Interpretation, Foreign Exchange Transactions, Mistaken Payments, Restitution, Amendment of Pleadings
Contract Law Banking and Finance Law Insolvency Law Estoppel by Convention Estoppel by Acquiescence Waiver Accord and Satisfaction ISDA Master Agreement Interpretation +4 more

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Parties

Kaupthing Singer & Friedlander Limited (in administration)

Claimant

UBS AG

Defendant

Procedural Posture

Commercial Claim (contract/dispute) / Judgment After Trial

Legal Issues

  1. 1 Whether UBS discharged its payment obligation under the FX trade by mistaken payment to a third party (Khf)
  2. 2 Whether KSF is estopped from claiming the US$65 million from UBS
  3. 3 Whether KSF waived its rights or agreed to accord and satisfaction

Ratio Decidendi

KSF is estopped by convention and acquiescence from claiming the US$65 million from UBS because both parties shared the assumption that the payment obligation was discharged, UBS acted to its detriment in reliance on this assumption, and it would be unjust to allow KSF to resile from it. The mistaken payment and subsequent conduct closed the FX trade as between the parties. The application to amend the pleadings was refused as being too late and insufficiently particularised.

Court Disposition

Claim dismissed

Orders

  • Permission to amend particulars of claim refused
  • Claim by KSF for US$65 million against UBS dismissed