Deutsche Bank refused SC permission to appeal in Libor battle

Indian property company Unitech will pursue Libor-based claims against Deutsche Bank after the Supreme Court refused the bank permission to appeal (PTA) a claim amendment accepted by the Court of Appeal (CoA), according to The Lawyer.

In November 2013, the CoA said Unitech, which has instructed Stephenson Harwood partner Richard Gwynne, could amend its counterclaim against the bank to include Libor manipulation arguments. The bank had sought to quash the ruling at the Supreme Court, instructing Allen & Overy partner Andrew Denny, to take the challenge forward.

Lords Neuberger, Clarke and Sumption have rejected the PTA bid, stating, “It is not normally appropriate for the Supreme Court to entertain appeals on an issue which the Court of Appeal has simply held to be arguable and this is not an exception”

The attempt marks the latest in a complex series of battles waged between the bank and Unitech. The battle will now be set for a High Court outing following the rejection from the final court.

The bank has been pursuing Unitech, India’s second largest real estate company, over a USD150m loan it made to the company. In a separate action, the bank is attempting to recover USD11m as part of an interest rate swap contract. In 2012, Unitech issued a counterclaim alleging that the bank sold it an unsuitable product based on Libor rates. It claims the loan swap and contracts were invalid because of the link to manipulated Libor rates.  The seminal case will determine whether Libor manipulation can invalidate past deals and wipe out debts.