[2013] EWCA Civ 238
Successful appeal against bank which obtained judgments by
fraud and dishonesty
On 12 April 2013, the Court of Appeal held that judgments
obtained previously by RBS in the Commercial Court against Highland
had been obtained by fraud and, due to the dishonesty exhibited by
RBS, refused to allow anti-suit injunctions sought by the bank in
relation to proceedings brought by Highland and Scott Law in
Texas.
Factual Background
Between 2006 and 2008, RBS, like many other banks, was heavily
involved in funding structures based on financial derivative
products such as CDOs (Collateralised Debt Obligations). As was
common practice, the Texas-based Highland group of companies
launched a CDO issued by an SPV. RBS was to be the
"Advisor" to the transaction and would finance the
purchase of the portfolio, in this case consisting mainly of
European Senior Secured Loans, to be held by the SPV issuer. The
loan portfolio would provide security for the
