Blow to IRSA mis-selling claims

A Scottish Court of Session judge has dismissed a claim by Grant Estates Ltd (GEL) that Royal Bank of Scotland mis-sold an interest rate swap to the property developer in 2007 (Grant Estates Ltd and ors v Royal Bank of Scotland and ors [2012] CSOH 133).

GEL had entered into a loan agreement with RBS but, when it breached that agreement as a result of financial difficulties in the economic downturn, RBS placed the developer into administration. At the heart of GEL’s claim against RBS was the allegation that RBS employees mis-sold it an interest rate swap agreement (IRSA).