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Barclays to pay own $46 million legal bill in Staveley court case

Published 03/11/2021, 12:31 PM
Updated 03/11/2021, 12:35 PM
© Reuters. FILE PHOTO: The Barclays logo is seen in front of displayed stock graph in this illustration
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By Lawrence White

LONDON (Reuters) - A judge ruled Barclays (LON:BARC) will have to pay its own 33 million pound ($46.09 million) legal bill despite winning a case against British businesswoman Amanda Staveley's PCP Capital Group over how the bank negotiated a financial lifeline during the credit crisis in 2008.

Judge David Waksman said on Thursday he made "no order as to costs", meaning both sides will pay their own legal costs. PCP had been potentially liable for both sides' expenses under England's "loser pays" laws.

Waksman in February had found Barclays guilty of “serious deceit” over the deal which offered Barclays a lifeline during the crisis, but denied Staveley damages and dismissed her claim.

Staveley incurred costs of nearly 20 million pounds in fighting the case, court documents showed.

The civil case revolved around how Barclays secured billions of pounds from Qatar and Abu Dhabi-backed investors 13 years ago, allowing it to secure its independence - and the jobs of its bosses - by avoiding a state bailout.

PCP, which led a 3.25 billion pound, Abu Dhabi-backed investment into the bank, alleged it was induced to fund Barclays on much worse terms than Qatar - despite assurances it would get the same deal.

While Waksman said Barclays had deceived Staveley, he ultimately ruled in February that PCP had not proven its case on causation and loss, meaning the overall case failed.

“We welcome the Judge’s decision, which justly ensures that PCP is not liable to pay Barclays any of its costs of the litigation," Khaled Khatoun, a lawyer representing Staveley, said on Thursday.

© Reuters. FILE PHOTO: The Barclays logo is seen in front of displayed stock graph in this illustration

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