On Friday, the High Court of Justice in London rejected UBS’s counterclaim against HSH Nordbank in relation to the North Street 2002-4 CDOs.
In February HSH Nordbank started a $500 million claim in New York against UBS relating to the mis-sale and mis-management by UBS of its North Street CDOs. On the same day, UBS filed a counterclaim against HSH Nordbank in the High Court of Justice in London.
Friday’s decision “is welcomed by HSH Nordbank,” says HSH Nordbank spokesman Rune Hoffmann. “It confirms that UBS’s actions were nothing more than a transparent attempt to confuse and delay the proceedings. In addition, Mr. Justice Walker’s decision to refuse UBS’s request to appeal confirms that UBS’s case is spurious and has no reasonable grounds for success.”
“UBS notes the English High Court Court’s decision not to hear UBS’s claims that it has fulfilled all of its obligations to HSH and has committed no wrongdoings,” says UBS spokesperson Hana Dunn. “UBS continues to believe that the UK courts are the proper forum for this dispute and is seeking permission to appeal. In the hearings before the UK courts, HSH conceded that it will be abandoning its attempt in the New York courts to unwind the entire transaction. UBS welcomes this substantive development.”
The court’s full decision is available online at http://www.bailii.org/ew/cases/EWHC/Comm/2008/1529.html.