The Royal Bank of Scotland won an important decision in the Court of Appeal today against a claim of mis-selling and negligent misstatement brought by clients Mr Paul Rowley, an hotelier, and Mr John Green, an estate agent, in respect of interest rate swap products. Messrs Rowley and Green alleged that RBS failed to advise them correctly with regard to the terms of the interest rate swap product and had recommended that they enter into the interest rate product, on the basis that an employee of RBS had told them that the particular product was ’suitable’ for them. The High Court and, now, the Court of Appeal rejected the allegations, finding that RBS had not advised Messrs Rowley and Green to take the product but had merely told them that it was suitable for their requirements. The Court of Appeal also decided that RBS was under no obligation to give advice as to whether Messrs Rowley and Green should take the product and that its obligations were limited to giving accurate information about the product.
If you require further advice with regard to this case or mis-selling claims generally, please contact Julian Johnstone, head of Druces LLP’s Litigation & Dispute Resolution team.This note does not constitute legal advice. It is guidance only and is correct as at 5 August 2013.