Dentons and RBS have been accused of deliberately withholding documents related to the bank’s controversial global restructuring group (GRG) from the High Court.
The allegation – filed at the court late last week – states that a secret cache of documents leaked to BBC and Buzzfeed in October, known as the “Dash for Cash” leaks, prove that “RBS is in serious and substantial breach of its disclosure duties” in the case Stuart Wall v RBS.
The leaked documents allegedly show that RBS and Dentons “failed to disclose in these proceedings any or the majority of the high level documents which relate to the purpose, structure, organisation and management of GRG”, according to the claim.
The claim reads: “It is difficult to understand how such wholesale non-disclosure can be other than deliberate.”
It continues: “RBS’ approach to disclosure is disrupting an orderly process to trial” and adds, “in light of the BBC/Buzzfeed documents, it is now possible to identify some of the obvious and core emissions from RBS’ disclosure”.
“What is required is a sea-change in RBS’ attitude to its disclosure obligations.”
Businessman Stuart Wall is suing the bank for a reported £400m over claims RBS forced his business, Opal Property Group, into financial distress and subsequent administration. He has instructed Hausfeld to bring the claim.
The claim skeleton was filed alongside a witness statement by Hausfeld London partner John McElroy and seen by The Lawyer, supporting the allegation of deliberate non-disclosure.
McElroy’s statement said RBS’s failure to disclose documents related to GRG and why his client’s business was put into GRG “is far more serious than its failures during the PAG litigation”.
RBS and Dentons also came under fire for recent disclosure failings in the case Property Alliance Group (PAG) v RBS. The pair were criticised by Mrs Justice Asplin for their “cavalier” attitude to disclosure in the case, which also centres around claims of Libor manipulation and allegations relating to the operations of GRG in running down profitable businesses.
Wall’s legal team received disclosure from RBS in August but now say the bank and its lawyers have declined to provide all the relevant documents. Its latest disclosure application is expected to be heard in December.
RBS has instructed Dentons partner Thomas Leyland for its defence, with Leyland turning to Fountain Court’s Andrew Mitchell QC leading Tamara Oppenheimer and Natasha Bennett.
Wall’s business Opal Property Group was the largest private owner of student accommodation prior to it going to administration in spring 2013 following a lengthy restructuring attempt.
Wall is represented by Hausfeld partners John McElroy and Anthony Maton, who have instructed Guildhall Chambers’ Stephen Davies QC, Neil Levy and John Virgo on the claim – the same team used in Guardian Care Homes v Barclays to secure a reported £40m settlement for the claimant.
GRG is currently the subject of a regulatory investigation by the Financial Conduct Authority with the final report on the probe expected to be published imminently.
It emerged on Tuesday (8 November) that RBS will set aside £300m to repay businesses fees charged by the GRG division. The bank is expected to make the announcement today, in a move that will coincide with an appearance by the Financial Conduct Authority (FCA) chief executive before a Treasury Select Committee over GRG’s operations.
Dentons declined to comment.
The legal line-up:
For the claimant, Stuart Barrie Wall
Guildhall Chambers’ Stephen Davies QC, Neil Levy and John Virgo, instructed by Hausfeld partner Anthony Maton
For the defendant, RBS
Fountain Court’s Andrew Mitchell QC, Tamara Oppenheimer and Natasha Bennett, instructed by Dentons’ partner Thomas Leyland
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