In November 2013, the Court of Appeal delivered its long-awaited judgment in the cases of Graiseley Properties Ltd and others v Barclays Bank Plc and Deutsche Bank and others v Unitech Global Limited [2013] EWCA Civ 1372. The appeals, which were heard together, form part of ongoing proceedings in what are seen as test cases for claims relating to LIBOR.
- The claimants were allowed to amend their original statements of case to include claims for fraudulent misrepresentation on the basis of a number of implied representations relating to the accuracy of each bank's LIBOR submissions.
- The claims relate to interest-rate swap mis-selling. The claimants assert that the Bank mis-sold interest rate swaps, containing rates referenced to LIBOR, on the basis that they were suitable products when they were not.
- The Court of Appeal unanimously decided to allow the amendments on the basis that it was at least arguable that that allegations of LIBOR manipulation were relevant to mis-selling claims and that the banks were impliedly representing that their participation in the setting of the LIBOR rate was honest.
- It remains to be seen what the courts will make of the claims at trial. The Graiseley case is expected to be heard in April 2014.
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