Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Banking & Finance analysis: What can be learned from the decision in Thornbridge v Barclays Bank Plc? David Bowden, freelance independent consultant, outlines the case and talks to Lisa Lacob, a barrister at 3 Verulam Buildings, about the consequences of this case.
Thornbridge Ltd v Barclays Bank Plc  EWHC 3430 (QB)
The Mercantile Court in Manchester heard a contested trial over five days in which it was alleged that a bank had mis-sold a business customer an interest rate swap product. In a lengthy reserved judgment HHJ Moulder QC dismissed the claim and ruled in favour of the bank. This is the first reported case against Barclays Bank involving alleged mis-selling of an interest rate swap which has gone to trial.
Briefly, what was the background to this case?
David Bowden (DB): A company borrower claimed damages from the bank for losses arising from alleged:
regarding information and advice given in respect of an interest rate swap the borrower had entered into in connection with a loan from the bank.
The bank required the borrower to execute an interest rate hedge, or accept a fixed interest rate. The borrower’s director (Mr Harrison) discussed hedging with a representative (Mr Burgess) of the bank. Mr Burgess also sent Mr Harrison a written presentation entitled ‘Interest Rate Risk Management Strategy’. The parties entered into a five-year vanilla interest rate swap agreement in May 2008.
The swap was intended to protect the borrower against interest rate rises. However, interest rates then fell to historically low levels and the borrower was unable to benefit from the falling rates. The swap proved expensive. The borrower alleged that the bank failed to provide adequate information regarding break costs, including by failing to give examples of the break costs applying when interest rates were very low and by failing to advise it that the swap may restrict its ability to refinance its lending. The borrower also alleged that the
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Miranda is a solicitor specialising in leveraged and acquisition finance. She trained at Hogan Lovells International LLP and qualified into the international banking and finance team. During her time at Hogan Lovells she worked on a variety of domestic and cross-border transactions, acting for both borrowers and lenders. She also experienced secondments to Barclays Bank PLC and Kaupthing Bank hf.
0330 161 1234