Banks offer waivers for relationship firms to act against them in disputes
Some of the world's largest banks are offering waivers allowing their external legal advisers to act against them in certain disputes between financial institutions, in a bid to quickly resolve issues arising from the current economic turmoil. Institutions including Deutsche Bank, Goldman Sachs, UBS and JPMorgan are understood to have held informal discussions about conflicts issues and the possibility of allowing law firms to act for or against them in different disputes.
December 11, 2008 at 12:33 AM
2 minute read
Several major banks offer flexibility for external legal advisers to act for or against them in minor disputes
Some of the world's largest banks are offering waivers allowing their external legal advisers to act against them in certain disputes between financial institutions, in a bid to quickly resolve issues arising from the current economic turmoil.
Institutions including Deutsche Bank, Goldman Sachs, UBS and JPMorgan are understood to have held informal discussions about conflicts issues and the possibility of allowing law firms to act for or against them in different disputes.
The move could lead to law firms acting against longstanding clients in mediations on simple financial institution disputes, such as those concerning issues on straightforward debt transactions.
However, more complex disputes such as negligence or fraud cases would remain out of bounds.
The banks' flexibility comes as they bid to resolve disputed matters without the time and expense of hitting the courts.
The development comes as the predicted upswing in litigation, expected as a result of the credit crisis, has so far failed to materialise. However, with a few early cases including Barclays Capital's claim against Bear Stearns, and HSH Nordbank's attempt to recover losses on a $500m (£337m) portfolio of collateralised debt obligations, which were structured and sold by UBS, law firms with strong banking and litigation practices have been pushing for greater flexibility from clients.
Jonathan Kelly (pictured), a financial litigation partner with Simmons & Simmons, said: "In certain areas, for example, around International Swaps and Derivatives Association interpretation disputes or other technical issues, where it will benefit the bank and the market as a whole to establish the position efficiently and quickly, some clients may be willing to be flexible.
"However, when it comes to fraud or negligence, most clients will still take the understandable line that they would not wish a relationship firm to be acting."
More in-house news, comment and analysis
Sign up to receive In-house News Briefing, Legal Week's new digital newsletter
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Workload and Getting It All Done Top Challenges for In-house Counsel: Survey
4 minute read
Amazon Corporate Counsel in Brussels Returns to US Firm in ‘Boomerang Hire’
2 minute read
Former Miral GC Brings Commercial Insight to BCLP’s Middle East Real Estate Practice
4 minute readTrending Stories
- 1Exits Leave American Airlines, SiriusXM, Spotify Searching for New Legal Chiefs
- 2Etsy App Infringes on Storage, Retrieval Patents, New Suit Claims
- 3The Secret Prior Art Problem Rears Its Ugly Head
- 4Four Things to Know About Florida’s New Law to Protect Minors Online
- 5US Supreme Court Considers Further Narrowing of Federal Fraud Statutes
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
