The appellant, Barclays Bank PLC, appealed a trial judgment finding its Notice of Early Termination of a complex asset-backed commercial paper transaction invalid and the respondent Devonshire Trust's Notice of Early Termination valid.
The Court of Appeal upheld the trial judge's findings that Barclays' notice was invalid due to its fraudulent misrepresentation, bad faith, and the principle that a party cannot benefit from its own wrong, as Barclays' failure to make liquidity payments contributed to Devonshire's insolvency.
The Court also upheld the validity of Devonshire's notice.
However, the Court allowed the appeal in part regarding the calculation of Barclays' Settlement Amount, substituting a figure of $264 million for the trial judge's $12,000 valuation, subject to deductions for mitigation.
