BHP faces ￡33.6bn negligence trial, Barclays challenges motor finance ruling, Landlords stay put despite legislation fears
COMMERCIAL LAW
BHP faces ￡33.6bn negligence trial
City AM ?
BHP is set to face a landmark trial at the High Court in London starting 21 October, defending itself against allegations of negligence related to the catastrophic collapse of the Fund?o dam in Brazil in 2015. The disaster resulted in the release of approximately 50m cubic metres of toxic waste, claiming 19 lives and causing extensive environmental damage. The prosecution, led by Pogust Goodhead, argues that BHP, as a 50% owner of the dam's managing firm, was aware of the risks yet funded its expansion. Claimants, including over half a million individuals and numerous municipalities, are seeking up to $44bn (￡33.6bn) in compensation.
Barclays challenges motor finance ruling
Reuters ?
Barclays has approached London's High Court to contest a significant ruling regarding motor finance commission, which could influence a potential ￡1bn consumer redress scheme from the Financial Conduct Authority (FCA). The case follows the FCA's investigation into discretionary commission arrangements in the motor finance sector. Barclays Partner Finance is appealing a decision by the Financial Ombudsman Service, which found that a customer was unfairly charged ￡1,326.60 in commission on a loan. Barclays has compensated the customer but is pursuing the case for broader implications, as the outcome may serve as a precedent for similar cases. The FCA is closely monitoring the case, which may impact its ongoing review of historical motor finance practices.
FAMILY LAW
Lawyers and judges 'need trauma training'
The Times ?
A retired High Court judge is advocating for increased awareness of trauma's impact on victims in family law cases. Evidence of domestic and economic abuse is rising, yet many lawyers lack training in trauma's effects. Research by Catherine O'Neill at Canterbury Christ Church University revealed that only 9% of 46 lawyers surveyed had received trauma training. In response, Burgess Mee law firm and the Rosefield Divorce Consultancy have partnered with Innisfree Therapy clinic to educate solicitors on recognising trauma signs. Peter Burgess says: "Working in the family courts without an understanding of the impact of trauma risks evidence being misunderstood." Laura Rosefield highlights that trauma can lead to victims appearing evasive or inconsistent in court. Sir Nicholas Francis, a retired judge, notes that many judges are ill-informed about trauma's effects, which can lead to unjust decisions. He warns against judging witnesses solely based on their demeanour, as it may misrepresent their experiences.
Judges urged to consider abuse in divorce settlements
The Times ?
Family lawyers are calling for judges to give more weight to domestic violence and economic abuse when making financial orders for separating couples. A recent report by Resolution revealed that 80% of 500 surveyed justice professionals believe that courts inadequately consider these factors, leading to unfair outcomes.?Claire Blakemore, a family?law?partner at?Withers, says: "Case?law?has developed in a way that has meant that we frequently have to advise clients that, however unpleasant and harmful their spouse's behaviour has been, it is unlikely to be taken into account." The report also highlights that "judges must do more to stop ongoing abuse" during court proceedings, as abusers often exploit litigation to maintain control.
EMPLOYMENT LAW
HSBC appeals decision reinstating discrimination claim
Reuters ?
HSBC has appealed an employment tribunal's decision to reinstate a senior investment banker's lawsuit that alleges the bank victimised and discriminated against her when it did not hire her for a senior sales role in 2018. Carmen Chevalier-Firescu sued HSBC in 2020, claiming she was not appointed as the head of the bank's London derivatives sales team for hedge funds partly because she had sued her former employer, Barclays, for making her redundant after she returned from maternity leave. Her case was initially dismissed by a tribunal but reinstated on appeal earlier this year. HSBC told the Court of Appeal that?Chevalier-Firescu's claims should be dismissed in part because she had filed them after the standard three-month window. Reuters notes that the lawsuit is a rare example of an employment claim against a prospective, rather than current, employer.
Not saying hello to a colleague could break law, judge says
In a landmark ruling, a tribunal has determined that a lack of greeting from a managing director can contribute to an unfair dismissal claim. Nadine Hanson, a recruitment manager, successfully argued that her boss, Andrew Gilchrist, ignored her greetings on multiple occasions, which undermined her confidence. Employment Judge Sarah Davies said: “That is conduct . . . that is calculated or likely to undermine trust and confidence.” Following a series of events, including Gilchrist's unannounced visit and subsequent email to Hanson’s staff offering pay rises without her knowledge, Hanson was said to have felt “humiliated” and undervalued, leading her to resign. The tribunal ruled in her favour, and she is now set to receive compensation from Interaction Recruitment, with the amount to be determined later.
PROPERTY LAW
Landlords stay put despite legislation fears
City A.M. ?
Recent data suggests that landlords are not looking to sell up en masse, despite concerns about new renter-friendly legislation. Research by Lomond indicates that the number of properties for sale has decreased by nearly 20% from June to September 2024. Last month, 10,041?properties?with tenants still in place were listed on the?housing market - down from the 12,423?properties?listed in June 2024. While some industry figures, like Marc von Grundherr of Benham and Reeves, have warned of a potential crisis, Ed Phillips, chief executive of Lomond, said: “we're yet to see any evidence of this.” He noted that the true impact of the legislation will be clearer after the upcoming Budget, particularly regarding potential changes to Capital Gains Tax that could affect Buy-to-Let investors.
Sandbanks property row reaches new heights
A dispute has arisen in Sandbanks, Dorset, over the construction of luxury mansions. John and Deborah Yeoman, who demolished their ￡1.7m house to build a three-storey mansion worth ￡8.8m, are now objecting to their neighbour's larger development. Businessman Jeremy Gardner purchased the adjacent property for ￡2.8m in 2015, securing permission to replace it with a four-storey ultra-modern mansion. The Yeomans opposed Gardner’s project, claiming it would "ruin the skyline" and dwarf their house. Since Gardner's home was completed, the Yeomans have submitted plans to demolish their own house and construct an even larger five-storey mansion, aiming to "reassert the hierarchy of built form." Gardner has duly objected to the Yeomans' plans, saying the?house?should be just four storeys - which would make it shorter than his.
GENERAL LAW
Attorney-general makes plea to save the rule of law
In an interview with the FT, Lord Hermer, the attorney-general, has stressed the need to protect the rule of law from the "age of populism." He urged the current administration to take "immediate steps to restore the UK's reputation" by adhering to international conventions and championing legal institutions. Hermer's comments are seen as a critique of the previous Conservative government, which faced accusations of neglecting legal frameworks post-EU referendum. He highlighted the importance of the European Convention on Human Rights (ECHR), stating it is "an essential element of the rule of law and a stable democratic culture."
CMA cracks down on legal services
Daily Mail ?
The Competition and Markets Authority (CMA) is taking action against poor practices in the legal services sector, particularly targeting unregulated providers of will writing and pre-paid probate services. The CMA emphasises the importance of consumer protection, stating: "It is crucial they understand and comply with their consumer protection obligations." With new enforcement powers set to be introduced next spring under the Digital Markets, Competition and Consumer Act, the CMA aims to ensure compliance and protect consumers from misleading practices.
Rise of ‘mega trials’ fuels fee bonanza for London’s top lawyers
London’s top commercial courts are handling some of the highest value and most complex cases in English legal history. Critics argue this demonstrates a creeping Americanisation towards a more litigious culture.
LEGAL TECH
EU AI Act checker highlights Big Tech's compliance pitfalls
Reuters ?
Data from Swiss start-up LatticeFlow AI seen by Reuters suggests that some prominent artificial intelligence (AI) models, including those developed by Meta, Mistral, Alibaba, Anthropic, and OpenAI, fall short of European rules in key areas including cybersecurity resilience and discriminatory output. Discriminatory output has been a persistent issue in the development of generative AI models, reflecting human biases around gender, race and other areas when prompted.?Petar Tsankov, LatticeFlow AI's chief executive and co-founder, said the test results were positive overall and offered companies a roadmap for them to fine-tune their models in line with the AI Act. "The EU is still working out all the compliance benchmarks, but we can already see some gaps in the models," he said, adding "With a greater focus on optimising for compliance, we believe model providers can be well-prepared to meet regulatory requirements."
Welsh government urges tech-driven justice
Julie James, Wales' Counsel General and Minister for Delivery - the nation’s top law officer - has urged the legal sector to embrace new technologies to enhance efficiency and accessibility.?“We need to find efficiencies in how we do justice,” said James. “We need it to be quicker — without losing its core strength of fairness.”? She emphasised that technological tools could help streamline often-complex processes and make them more user-friendly for the public and more cost-effective for legal practitioners.
FIRMS
Hogan Lovells Autumn retention score revealed
Legal Cheek ?
Hogan Lovells has announced a retention score of 65% for Autumn 2024, with 17 out of 26 trainee solicitors transitioning to associate roles. Of the 24 final-seat trainees who applied, all 17 offers were accepted. The firm welcomed six new recruits in litigation, arbitration, and employment, five in corporate, and four in global regulatory, alongside two newly qualified associates in finance.?
CASES
Argentina's ￡1bn bond case rejected
City AM ?
The Supreme Court has dismissed Argentina's attempt to appeal a ruling that imposes a ￡1bn liability on the country due to its failure to pay GDP-linked sovereign bonds since 2014. The case originated from Argentina's non-payment, which was contingent on its economic performance. After ceasing to publish GDP data and altering calculation methods, Argentina avoided triggering payments that could have totalled several billion euros. Following a lawsuit filed in the High Court by bondholders, including Palladian Partners, the court ruled in favour of the claimants, ordering Argentina to pay over ￡1.1bn. Aidan O'Rourke, partner at Quinn Emanuel, said: “The claimants have always been confident in their case, and are pleased with the Supreme Court's decision to refuse permission to appeal.” The bondholders are set to collect on the $350m appeal deposit within 45 days.
Husband who helped wife to die can inherit her estate
Daily Mail ?
In a landmark ruling, the High Court has allowed Philip Morris, 76, to inherit his late wife Myra's estate despite his involvement in her assisted suicide in Switzerland. The court found that the application of English law should not apply in this case, as the couple's children supported Mr Morris' claim. Myra, 73, suffered from multiple system atrophy, a terminal condition, and expressed her wish to end her life. Mr Morris stated, "Everything I did, I did because she asked me to, and because I cared for her too much to refuse."