Clifford Chance

First Hong Kong misselling case of 2016 won by bank

28 January 2016

The case of Li Kwok Heem John v Standard Chartered International (USA) Ltd [2016] HKEC 7 is the latest case in which the courts have dismissed claims of alleged misselling by banks. The bank denied it had made misrepresentations and relied on the terms within its account opening documents by which it said the plaintiff was not entitled to rely on advice or recommendations given by it. While dismissing the banks' arguments on so-called "contractual estoppel", the Court of First Instance found that the plaintiff had failed to prove negligence because the bank had conducted due diligence on the scheme with reasonable care and skill, judged in the light of what was known at the time.

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