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Benjamin Scrace

Associate

London

BS

Benjamin Scrace

Associate

London

News & insights

Publications: 21 JUNE 2018

Swap close-out costs - causation but no assumption of responsibility by auditors

A building society sued its auditors for the close-out costs of interest rate swaps entered into on reliance on advice that they could be accounted for as hedges. The High Court found negligence, which was the cause of the loss and that the close-out costs were reasonably foreseeable loss. However, applying the Supreme Court’s recent decision in Hughes-Holland v BPE Solicitors, the High Court found that there was no assumption of responsibility for losses of the type of the close-out costs, and so the auditors were not liable: Manchester Building Society v Grant Thornton UK LLP [2018] EWHC 963 (Comm), 2 May 2018.

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BS

Office

London

Allen & Overy LLP
One Bishops Square
London
E1 6AD

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Qualifications

Professional

Admitted as a Solicitor (England and Wales), 2019

Academic

BA, History, Oxford University (St John’s), 2015.

GDL, BPP University, 2016

MA LPCB (Masters LPC with Business), BPP University, 2017