Success with Noerr – Leipzig water authority KWL finally succeeds in London

11.04.2018

Under the lead of Noerr, the municipal water authority Kommunale Wasserwerke Leipzig GmbH (KWL) finally succeeded in its legal dispute with UBS, this time also before the Supreme Court of England and Wales. The application by UBS for admission of a further appeal against the Court of Appeal judgment given on 16 October 2017 was dismissed by the court yesterday. Thus the highest court has found that UBS cannot make any claims for payment against KWL.

The decision ends a nine-year legal dispute. In a landmark decision, the Court of Appeal had dismissed the appeal by UBS against the judgment given by the High Court of Justice on 4 November 2014. The High Court of Justice had decided in favour of KWL, LBBW and Depfa following a 15-week trial.

The case concerned a total of four complex derivative financing transactions known as collateralised debt obligations (CDOs). The CDOs were sold to KWL by UBS in 2006 and 2007. In the course of the worldwide financial crisis, there were defaults in the portfolio from 2008. Claims to payment of approximately €350 million were subsequently made against KWL.

Noerr advised KWL in this complex dispute before the German and English courts from the outset as lead counsel. The team specialising in cross-border disputes led by Munich litigation partner Christine Volohonsky and associated partner Lucy Holden played a leading role throughout the dispute in Germany and England and advised KWL comprehensively on strategic matters.

Representatives to KWL: Noerr LLP

Christine Volohonsky and Lucy Holden (joint lead), Detlev Strässer (all Litigation, Munich)

England:

Barrister: Tim Lord QC, Simon Salzedo QC, Stephen Midwinter QC, Craig Morrison (Brick Court Chambers)

Solicitor: Addleshaw Goddard LLP: Michael Barnett, Louisa Caswell