Bank settles dispute with law firm duo for undisclosed sum

Linklaters, Gianni Origoni Grippo & Partners and Credit Suisse have settled a £118m professional negligence dispute relating to advice given to the bank on a deal with Italian food company Parmalat nearly 10 years ago.

It is unclear how much the firms have settled for; however, the figure, which both law firms are contributing to, is expected to be only a fraction of the original claim value.

News of the settlement comes after Credit Suisse sent a letter before action to Linklaters in February laying out a claim worth roughly €136m (£118m) against the firm regarding advice the bank was given on a 2001 bond deal with Parmalat, before the company went into administration in 2003.

Linklaters London capital markets partner Simon Firth advised on the deal in question but took advice from former alliance partner Gianni.

The magic circle firm filed its own negligence claims in March this year against both Gianni and several individuals associated with the firm, including former UK managing partner Bruno Bartocci, now a partner at Legance in Italy. The claims were filed in the admiralty and commercial division of the High Court.

Slaughter and May litigation heavyweight Deborah Finkler advised Linklaters on both claims, with Allen & Overy litigation partner John O'Conor advising Credit Suisse. Clyde & Co advised Linklaters' insurers, having initially been mandated to advise the firm as well. Credit Suisse chairman Urs Rohner, who was the bank's general counsel between 2004 and 2009, led the settlement discussions internally.

A Credit Suisse spokesperson said: "The proceedings commenced earlier this year by Credit Suisse International against Linklaters, to which Gianni Origoni Grippo & Partners was joined as a defendant, have been resolved on a basis satisfactory to all parties."

One professional negligence partner said: "I am not surprised that the parties settled so quickly. It is not unusual for business relationships to continue throughout these kind of claims, particularly because [Linklaters and Credit Suisse] are so embedded in each other's businesses."

Credit Suisse settled all claims with Parmalat in Italy in 2008, agreeing to pay €172.5m (£106m) to settle without admission of liability.