A Scottish Court of Session judge has dismissed a claim by Grant Estates Ltd (GEL) that Royal Bank of Scotland mis-sold an interest rate swap to the property developer in 2007 (Grant Estates Ltd and ors v Royal Bank of Scotland and ors [2012] CSOH 133). GEL had entered into a loan agreement with RBS but, when it breached that agreement as a result of financial difficulties in the economic downturn, RBS placed the developer into administration. At the heart of GEL's claim against RBS was the allegation that RBS employees mis-sold it an interest rate swap agreement (IRSA). GEL asserted that, but for the obligations it incurred under the IRSA, it would not have been in default of its obligations under its loan agreement with RBS and would not have gone into administration.
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