Dispute Resolution

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Update: CAT declines the grant of a collective proceedings order in Walter High Merricks CBE v MasterCard Incorporated and others [2017] CAT 16

Background As mentioned in our blog posted on 20 September 2016, MasterCard was facing one of the UK’s first class-action lawsuits, following the introduction of collective proceedings under the Consumer Rights Act 2015. This allows for collective proceedings to be brought in the Competition Appeal Tribunal (“CAT”) on an opt-out basis, by representatives of consumers … Continue Reading

Retailers Consortium v MasterCard – an update on ongoing MIF litigation

Background Our previous blog piece (20 September 2016) described how, in 2007, the EU found that MasterCard’s Multilateral Interchange Fees (“MIFs“) were unfairly high. This decision was applicable to cross-border transactions using MasterCard and Maestro cards in the European Economic Area (“EEA“). The finding was that Mastercard’s MIF breached Article 101 of the Treaty on the … Continue Reading

Court of Appeal rejects Titan Class X claim: speedread Q & A

(This article was first published on Lexis®PSL Banking & Finance. Click for a free trial of Lexis®PSL) What was the appeal about? Credit Suisse Asset Management (“CSAM”) was the originator of Titan 2006-1, a commercial mortgage backed securitization (“CMBS”). The Titan 2006-1 SPV (“Titan”) issued eight tranches of bonds (A to H) for a total of EUR 723 million. It used the proceeds to … Continue Reading

FCA chief calls for dispute resolution mechanism for small firms

The Yorkshire Post has reported that Andrew Bailey, CEO of the Financial Conduct Authority, is working with Parliament to develop an adequate and independent complaint resolution for SMEs who believe that they have been badly advised or “mis-sold” a product by a financial institution. Mr Bailey notes that the Financial Ombudsman Service (“FOS”) exists predominantly … Continue Reading

MasterCard faces one of the UK’s first class-action lawsuits

Class Actions in the UK Class actions have long been a feature of the US legal landscape. But until October 2015 there was no genuine “class action” procedure in the UK. Then the Consumer Rights Act 2015 (“CRA“) introduced collective proceedings that can be brought in the Competition Appeal Tribunal (“CAT“) by representatives of consumers … Continue Reading

Class X Noteholders granted permission to appeal inconsistent judgments

As previously reported on this blog, April saw two important judgments in the Titan and Windermere Class X cases. Those decisions have implications for both “CMBS 1.0” structures that include Class X notes in them, and for the wider financial markets in terms of how the courts are approaching disputes over the interpretation of finance … Continue Reading

Class X claim fails in High Court

In an important decision of the Financial List of the High Court, Mr Justice Snowden has rejected claims by the Windermere VII CMBS “Class X” noteholder that it had been underpaid interest on its notes on interest payment dates in 2015. The judgment in Hayfin Opal Luxco 3 SARL v Windermere VII CMBS plc has … Continue Reading

Due or Payable? Court of Appeal Clarifies ISDA Master Early Termination Provisions

The Court of Appeal has given renewed clarity on how to interpret the early termination provisions of section 6 of the 1992 ISDA Master Agreement. It made clear that inadequate and/or late provision of details of how an early termination amount was calculated will not entitle the Defaulting Party to avoid liability to pay the … Continue Reading

More on Class X claims – Lexis Nexis Q&A; Windermere VII litigation; Titan 2006-3 settlement plan vote on 4 April

LexisNexis Q&A My Q&A with Lucy Karsten of LexisNexis can be viewed here. Looking ahead to the Class X claims.   The Windermere VII Class X claims In addition to the Titan Class X claims I wrote about in my earlier blog, similar issues were before the High Court on the Windermere VII CMBS case last … Continue Reading

The Canary Wharf “Spens” case: why Welsh caravan parks are a danger to the financial markets

The Oxwich Leisure Park on Wales’s Gower Peninsular might seem a world away from the concerns of Noteholders of a Canary Wharf securitisation following the sale of a £795 million skyscraper. But a decision in the Commercial Court last week (28 January 2016) showed how in the one-size-fits-all world of English contract law they can … Continue Reading

High Court to offer specialist centre for financial markets disputes

London has for many years been a hub for resolving financial markets disputes. But the High Court in London is facing increasing competition from rivals like the Dubai International Financial Centre Courts, and initiatives to persuade financial institutions to arbitrate their disputes. These competitors are putting pressure on the English courts to up their game … Continue Reading

A watchdog for unrepresented interests: court highlights trustees’ duties

The unusual facts of a recent dispute between interested parties in the Theatre CMBS transactions have highlighted some important issues in complex structured finance transactions, and in particular the responsibilities of corporate trustees to protect the interests of otherwise unrepresented creditors.  The decision also considers the disenfranchisement provisions that are common in securitisation transactions, and … Continue Reading
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