After a groundbreaking ruling by the House of Lords, creditors represented by Deloitte & Touche are to sue the Bank of England over its role in supervising and licensing the collapsed Bank of Credit and Commerce International.
‘It is a landmark case,’ said a Deloittes spokesman. ‘The BoE has never been taken to court so it’s a groundbreaking case. Time will tell if it sets a precedent.’
The House ruled that creditors represented by Deloittes could bring a civil case against the BoE for ‘misfeasance in public office.’ The claim could total £1bn.
‘Before, the bank could not be sued for negligence,’ said the spokesman, adding that the charge isn’t exactly negligence, but ‘it’s a higher tort it means wilful recklessness in public office’.
The plaintiffs will attempt to prove there was a ‘duty of care,’ to those who deposited money in the fraud-ridden bank.
The case is expected to run for years. The period of disclosure, in which evidence is collected and that begins now, could go into 2002.
‘The cost of the case has been approaching #10m but the carrot at the end of the string is £1bn,’ he said.
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