Legal Notebook ADRIAN RUBENSTEIN V HSBC BANK PLC [2011] EWHC 2304 (QB) RECENT CASES, HEADLINE ISSUES AND NEW LEGISLATION FACTS In this case, heard before the High Court of England and Wales, the claimant alleged that, in and prior to September 2005, he had been wrongly advised by the defendant bank to invest £1.25 million into a fund known as the Enhanced Variable Rate Fund ( EVRF ), part of an investment product known as the Premier Access Bond ( PAB ). The PAB was issued by AIG Life, which was part of a wholly-owned subsidiary of the American International Group ( AIG ). Lindsay Joyce James Morse The claimant's investment in the EVRF Email: Lindsay.Joyce@dlapiper.com Email: James.Morse@dlapiper.com continued until September 2008. This was the time when the fjnancial position Contributor’s Biography: Contributor’s Biography: of Lehman Brothers (which had earlier Lindsay is a Partner at DLA Piper Australia James is a Senior Associate at DLA Piper in the year reported huge losses (formerly DLA Phillips Fox) who practises Australia who also practises in the area of arising from the United States sub- extensively in the area of professional negligence professional negligence, including with respect to prime mortgage market crisis), became as it affects property professionals, including claims for and against valuers. James regularly untenable and clients and shareholders of valuers. Before commencing practice in 1979, advises on valuation liability issues and is a Lehman Brothers withdrew their money. Lindsay practised as a valuer for 10 years, being guest lecturer at the University of Western Other major fjnancial institutions in the admitted as an Associate of what has become Sydney, addressing students from the School United States were coming under similar the Australian Property Institute in 1973. He of Economics and Finance on legal issues pressure, including AIG. As stated by The advanced to Fellow in 1989 and Life Fellow in and professional liability arising from property Honourable Mr Justice Jonathan Parker: 2005. valuations. [t]he queue of investors in these companies who were heading for the exit increased dramatically when, on 15 September [2008], Lehman Brothers fjled for Chapter 11 bankruptcy protection. Withdrawals from the PAB were subsequently suspended temporarily. When the claimant was eventually able to withdraw his investment, he suffered a loss of capital. The claimant alleged an entitlement to damages, representing such capital loss, on the basis that he was negligently advised by the bank to enter into the investment. Specifjcally, the claimant alleged that he had informed the bank that he required an investment that would protect his
Recommend
More recommend
