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Barclays became the first bank to be ordered to stand trial in a British court over damages stemming from manipulation of the Libor interest rate after a High Court ruling on Monday 29 October 2012. Guardian Care Homes, a residential care home operator based in Wolverhampton, is suing Barclays for up to £ 37 million over the alleged mis-selling of interest rate hedging products known as swaps. Mr Justice Flaux rejected Barclays attempts to oppose introduction of the Libor misselling claims.
Guardian Care Homes was also granted permission to introduce a claim alleging that Barclays acted in breach of Article 101 TFEU resulting from Libor manipulation. That claim was stayed by consent pending the European Commission’s investigation into alleged cartel activities relating to the setting of Euribor and Libor by a number of banks.
The trial is likely to act as a test case for thousands of small British firms who believe they were mis-sold such swaps.
The hearing has been reported in:
Kassie Smith is acting for Guardian Care Homes Limited on the competition law issues.
Click to view the judgment in Graiseley Properties Limited v Barclays Bank