In a recent High Court decision, a defendant successfully avoided certain interest rate swaps but was deprived of a favourable costs order because it had spent so much time on failed alternative arguments.

In response to an Italian bank’s claim relating to interest rate swaps, the defendant Italian local authority sought to avoid the swaps on a number of different grounds, including lack of capacity under Italian law and failure to comply with various provisions of Italian local government and financial services law. At first instance although the defendant was ultimately successful in avoiding the swaps, it lost on the majority of its arguments.<

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