Deloittes loses Bank BCCI case
Lawyers for BCCI liquidator Deloitte & Touche are likely to seek leave to appeal to the House of Lords tomorrow after Court of Appeal judges last week threw out its #360m claim against the Bank of England.
In a 2-1 decision, Lord Justices Hirst and Walker ruled the liquidators did not prove they had an arguable case that the Bank acted dishonestly in licensing BCCI or failing to revoke its licence.
But a Deloittes spokesman said the team took heart from the dissenting opinion of Lord Justice Auld, who accepted many of their arguments.
The case, which began in 1993, is the first time a central bank has been sued over its regulatory responsibilities. As such, it was always likely to go to the House of Lords – or further, the spokesman added.
Tomorrow’s hearing will set Deloittes’ appeal costs, but will also give Deloittes’ barristers the chance to seek leave to appeal to the House of Lords.
Deloittes last week revealed UK legal and liquidation fees totalled $330m for the period from July 1991 to October 1998. In spite of the expense of pursuing the case, creditors still maintain the Bank of England was the blameworthy party in the collapse of BCCI.