Many people love a good ending, Obiter has a penchant for a good beginning. A judgment which centres on complicated synthetic CDO (collateralised debt obligation) transactions – so complicated Mrs Justice Cockerill said that ‘some of the banking witnesses in this case struggled to explain the concepts themselves’ – ventured into moody settings more akin to gothic literature than High Court documents.
The case may be complex, but the 176-page judgment starts like a gothic finance novel would. Think Daphne du Maurier writing for a bank.
'In late 2007, as clouds gather in the sub-prime mortgage market…'
With the changing times and shorter, colder days, an opening like that feels perfect timing. Though Loreley Financing (Jersey) No 30 Limited v Credit Suisse Securities (Europe) and others might need a little work as a title, it doesn’t quite have the same ring as Rebecca or Dracula.
Obiter isn’t one to spoil endings normally: dear reader, look away now if you want to read the judgment for yourself, but after discussions covering misrepresentation, limitation and negligence, the happy ending (if there is such a thing) belonged to Credit Suisse as the judge found Loreley’s claim in misrepresentation failed, its claim based in negligence is time barred, and its alternative conspiracy claim also failed.
2 Readers' comments