Simon Duncan follows the latest drama surrounding swaps mis-selling in Hockin and Others v RBS plc
Mr and Mrs Hockin’s company, London & West Country Estates Limited (LWE) owned and managed commercial business parks in Somerset and Devon. In 2008, LWE entered into an interest rate swap with Royal Bank of Scotland Plc (RBS). LWE swapped a fixed rate of interest for a floating rate just prior to the collapse of the base rate to 0.5% in 2009. In October 2009 LWE was placed into the bank’s global restructuring group (GRG). LWE is now in liquidation.
The Hockins believe that LWE was “mis-sold” the interest rate swap. This label refers to a collection of different causes of action. Here, described as an advisory claim, a swap misrepresentation claim, a “LIBOR” claim, and the “GRG” claim. Mr Hockin broke new ground in 2014 when he successfully persuaded the High Court that the then administrators of LWE be obliged to effect an assignment of these claims to him, pursuant to Sch B1 of the Insolvency Act 1986, para 74 (see Hockin and Others [2014] EWHC 763
