The Manchester-based property group that lost to the Royal Bank of Scotland (RBS) in a high-profile test case on mis-sold interest rate swaps has applied to have part of its case appealed in the Supreme Court.
The Property Alliance Group (PAG) attempted to sue RBS for more than £30m, alleging the bank had mis-sold it interest rate swap products and wrongly moved it into the bank's controversial Global Restructuring Group (GRG).
PAG has accused RBS of fraudulently making implied representations about the London Interbank Offered Rate (Libor) and how it was set. It said it would not have entered into the swaps had it been aware of RBS' alleged complicity in the rigging of Libor.
RBS denied any wrongdoing.
PAG was dealt two blows; first by the High Court in December, and again by the Court of Appeal in March when the judge dismissed its appeal on all grounds, saying there was "no error in the way that RBS explained the terms of the swaps".
The court also decided that a "mezzanine duty" - more than a duty not to misstate but less than a duty to advise - did not exist.
PAG said its appeal to the Supreme Court would focus on the implied representation of sterling.
It said in a statement: "The appeal court judgment clearly showed that banks can be held liable for Libor manipulation. We welcomed the decision reached by the court that the sale of a financial product priced off Libor carries with it an implied representation that the bank would not manipulate the benchmark in the currency referenced in that product for any tenor.
"However we feel this was no more than the minimum standard that should be imposed on a major financial institution such as RBS. We feel that the appeal court should have gone further and found that the sale of a Libor-based swap carries with it a representation that the bank would not be manipulating any currency of the benchmark. This is the main point for which we are seeking permission to appeal to the Supreme Court.”
RBS declined to comment on PAG's application but mentioned the case when it released its first-quarter results last week.
In March, when the Court of Appeal dismissed the case, an RBS spokesperson said: “The bank is pleased that this litigation has once again been dismissed on all counts.”