Jenner & Block’s London office has secured judgment in the UK Supreme Court for client Singularis, a company in liquidation. The United Kingdom’s highest court has affirmed that the London brokerage arm of Japanese banking group Daiwa is liable to Singularis in negligence for facilitating the misappropriation of funds out of Singularis’ account in 2009. Including interest and costs, Daiwa faces a total liability to Singularis in the region of US$200 million.
This long-running litigation has developed the law with regard to the nature and scope of duty owed by financial institutions to their corporate customers in situations where fraud is suspected. It also provides important clarity on the circumstances in which an institution may - and may not - be able to avoid liability for breach of that duty.
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