Alex Leitch and David Butler
Abstract:
For 30 years or so many have thought that the English court would eschew any attempt at recovering damages in respect of speculative trading. However, in its judgment handed down last year in Parabola Investments Limited and others v. Browallia CAL Limited and others, the High Court has held that recovery in respect of such losses is not precluded as a matter of law. This paper looks in detail at the decision of the High Court in Parabola, a case of fraud, and considers whether the reasoning in that case has a broader application to a wider category of claims. The paper considers that the principles and the reasoning do have a broader application and that recovery should be permitted by the English court in any appropriate case, subject to such losses being proved.
Keywords:
fraud, damages, speculative trading, recovery, evidence, proof, trading strategy
Alex Leitch is a partner in SJ Berwin’s Financial Markets litigation group and has been a partner of SJ Berwin since 2000. Prior to joining SJ Berwin he was a barrister. Alex specialises in advising the firm’s banking, fund and other financial services clients on a broad spectrum of complex and multi-jurisdictional disputes from contractual claims to frauds and market abuse. He also advises on compliance and regulation matters, in particular advising on the defence of regulatory proceedings.
David Butler is an associate in SJ Berwin’s Commercial Litigation Department. David joined the department on qualification in September 2005. He has a varied practice advising on all manner of disputes ranging from fraud to contractual matters. The focus of his practice involves advising on matters involving the firm’s banking, funds and financial services clients. David also specialises in FSA disciplinary and enforcement proceedings.