Family wins right to sue RBS over their lost firm

 

A Plymouth family have won a landmark case giving them the green light to sue Royal Bank of Scotland for millions over the alleged mis-selling of interest rate swaps that ultimately left them with crippling borrowing costs on a £55m loan.

Michael and Diane Hockin saw the property empire they had built up over 30 years snatched out of their hands when the bank's Global Restructuring Group (GRG) put it into administration in 2012. Since then their London and Westcountry Estates – which converted redundant factories into premises for more than 300 small business clients – has been sold off bit by bit by the administrator, Ernst & Young.

Legal claims by companies in administration are often taken up by the administrators, but in this case EY opted not to push ahead and vigorously contested signing the rights to sue RBS to the Hockins, even though Mrs Hockin remains a creditor. But a court has now ruled she should be allowed to press ahead.

Mr Hockin told The Independent that the family's battle against the administrators and the bank had been a "horrendous" ordeal. "It's been two years and they've fought us every inch of the way. I'm pleased with the result but we're only halfway there.

"We are now lodging a claim against the swap and we'll be looking at the administration, which we believe was flawed."

He claimed the bank was "out of control" but added: "We have had the facilities and the tenacity to fight them."

While smaller business mis-sold swaps can sign up to a review under the auspices of the Financial Conduct Authority (FCA), those deemed to be too big have to fight on alone. Mr Hockin believes many businesses have been left hanging as a result. "How can you fight people like EY and RBS?"

The GRG's activities are currently under the scrutiny of the FCA after the government adviser Lawrence Tomlinson published a report alleging that it had tipped viable businesses into bankruptcy.

In his ruling, Nicholas le Poidevin, QC, said Mrs Hockin should be assigned the claim even though the largest beneficiary of an outcome against RBS would be a firm called Isobel, which is 75 per cent owned by RBS and 25 per cent by the private equity giant Blackstone. Isobel holds London and Westcountry's debt.

The judge wrote archly that the banks would "undoubtedly prefer the claims to be abandoned" but that it would be in Isobel's interests to proceed.

Alice Loveday, a managing partner at Berg, the law firm that represented the Hockins, said: "They have lost the business they took 30 years building up. It was making £1m when put into admin. We felt it was a very good claim."

EY said in a statement: "Further to the hearing held on 12 March 2014 and judgment handed down on 19 March 2014, the administrators respectfully acknowledge the order and will act in accordance with the court's judgment."

An RBS spokesperson said: "The Hockins have previously raised issues concerning their swap transactions, which the bank has investigated and responded to in full. We have not found any evidence of wrongdoing by the bank."

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower