Topic: Libor discontinuation

Focusing on key cases, developments and hot topics to help in-house counsel to stay up to date.

English High Court gives its first judgment on the effect on contracts of the cessation of LIBOR.

Clarifying the approach that the Court will take in relation to US dollar interest awards where there is no relevant contractual right to interest.

In a case concerning fraudulent misrepresentation relating to LIBOR manipulation, the High Court has granted summary judgment in favour of two banks, finding that the publication of the Final Notice started the limitation period and the claims were consequently time-barred.

In Leeds City Council and others v Barclays Bank plc and another [2021] EWHC 363 (Comm), Cockerill J struck out claims for rescission of loans on the grounds of fraudulent misrepresentation holding that a lack of ‘active appreciation’ of the alleged representations was fatal to the claim.

With the introduction of the Financial Services Bill (the FS Bill) into Parliament in October last year and regulated firms working hard towards transitioning away from LIBOR by end 2021, this post focuses on the FCA’s proposed new powers to address so-called “tough legacy” contracts.