Judge mulling whether RBS Global Restructuring Group case should get the go ahead

 
Hayley Kirton
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A Royal Bank of Scotland branch signboar
The bank has already set up a £400m pool to compensate those caught up in the GRG scandal (Source: Getty)

A judge is now considering whether a closely-watched case focusing on the Royal Bank of Scotland's Global Restructuring Group (GRG) should go ahead, after a hearing debating its merits drew to a close.

Neil Mitchell is seeking legal action against the bank, as well as KPMG and Cerberus, over the way Torex Retail, the software company he used to be chief executive of, was treated when it was moved into GRG. He claims the three defendants conspired to push the company into administration and then sell its assets for less than they were worth.

However, the defendants have applied to have the case struck out. If they succeed, Mitchell's case will not be heard in full.

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"Mr Mitchell is a professional gentleman of considerable standing and he has lived with this case for many years," Timothy Higginson, Mitchell's lawyer, told the court today.

Higginson continued: "He is not a person, and would not be a person, who would advance a position if he himself did not believe in it."

However, Patrick Goodall, RBS' lawyer, slammed the arguments brought, stating one hadn't "even attempted" to address the legal issues at play, while another had "no legal foothold".

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The judge is now considering his ruling and will return his decision at a later date.

Several others are in the process of lining up their own claims regarding RBS' GRG, so will be watching this case with interest.

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The bank has already set up a £400m compensation pot for small businesses which have been caught up in the scandal.

The Financial Conduct Authority (FCA) revealed last November its long-running investigation into the allegations lobbied at GRG had unearthed no widespread evidence of misconduct, although it did identify some failings, such as substandard communication with the customers placed in the turnaround division.

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