City firm Speechly Bircham has helped supermodel Elle Macpherson to secure victory in a court dispute involving liquidated bank Kaupthing Singer & Friedlander (KSF).

Macpherson had taken KSF's liquidators to the Isle of Man High Court, after they refused her request to 'set off' deposits she had with the bank against money owed by her Isle of Man nominee company to KSF for a mortgage on a London house.

The nominee company had been set up by the model in 2006 so she could buy the London house while retaining privacy over the address.

KSF's liquidators had turned down her request because the borrower was technically a company, but the court ruled that Macpherson and her company were effectively one and the same.

Speechlys advised Macpherson (pictured) alongside Isle of Man firm Moroneys, with Thirteen Old Square's John McDonnell QC instructed as counsel.

The case was won on the basis of a legal principle that Speechlys claims had not been used successfully in this way since the 1870s.

KSF was represented by offshore law firm Cains, with 3-4 South Square's Lloyd Tamyln instructed as counsel.

Speechlys head of international tax and trusts Charles Gothard said: "It is expensive and stressful to go to court against major institutions, especially where the law is as ancient as with equitable 'set off'. We hope this verdict will throw a lifeline to a lot of people caught up in complex battles with insolvent banks and lenders.

"This case highlights the importance of looking beyond statutory and dry legal rights, to the intentions and equities that underpin relationships with banks, particularly where there are complicated connections between lenders, individuals and the companies they control."

In a statement, Macpherson said: "I am very grateful for the tenacity and commitment of counsel and the brilliant team at Speechlys, who provided clear insight and were able to establish a robust defence in this difficult case."