Courts hit by a deluge of civil credit crunch cases
The financial crisis has prompted a continuing surge in the number of high-value commercial disputes reaching the High Court, figures published today by Reynolds Porter Chamberlain reveal.
The City law firm said that the number of commercial cases worth £25,000 or more rose by more than 10 per cent last year, as victims of the credit crunch sought to recoup their losses in the courts. There were 3,090 such claims filed in the final quarter of last year, RPC said, up from 2,799 in the same period of 2008. The trend for more litigation also seems to be accelerating, with 6,372 claims filed in the second half of the year compared to 5,890 during the first six months.
A good proportion of the cases appear to be directly related to the credit crunch. There are, for example, five separate cases pending concerning the three Icelandic banks which collapsed in the aftermath of the crisis, with claims filed against Kaupthing, Glitnir and Landsbanki. Similarly, JP Morgan and Lehman Brothers are currently embroiled in a high-profile dispute over dealings between the two banks in the run-up to the latter's spectacular blow-up.
RPC said that the British courts were seeing more crisis-related cases than the authorities in other countries because the City of London is a global banking centre that has played host to more financial deals than almost any other jurisdiction. "A significant number of the claims now coming into the UK courts are likely to be pure credit crunch related cases," said Geraldine Elliott, a partner at RPC. "Many of these cases are going to make a real difference to the future of the businesses that are involved because the amount at stake can be so high." Some litigants have taken cases to the US because pay-outs are can be higher.
Revealed: Devastating impact of 'bedroom tax' sees huge leap in demand for emergency hardship handouts for tenants
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
Revealed: Eerie new images show forgotten French apartment that was abandoned at the outbreak of World War II and left untouched for 70 years
Chloe Johnson death: Family of five-year-old British girl who died in a pool at in Egypt's Sharm el-Sheikh resort 'angry' that more wasn't done to save her
- 1 Stoke City investigate 'religious abuse' after 'pig's head is found in Kenwyne Jones' locker'
- 2 Gove’s lesson: spare the comma, spoil the child
- 3 Heading for America? Prepare for the longest US immigration queues ever
- 4 Grace Dent on TV: Extreme Couponing, My Strange Addiction, and Here Comes Honey Boo Boo, TLC
- 5 Join Ryanair! See the world! But we'll only pay you for nine months a year
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
£450 - £500 per day: Orgtel: Sourcing Manager - Banking - London - Up to £500p...
To be discussed at interview.: Queen Elizabeth's School: An experienced and ef...
£294.05 - £330.92 per day + 150 per day travel and accommodation: Orgtel: A le...