28.10.2011
Back to News Archive
Verdicts of the Supreme Court of Iceland in disputes concerning UK and Dutch wholesale deposits
Verdicts have been pronounced by the Supreme Court of Iceland in seven disputes concerning so-called UK and Dutch wholesale deposits in branches of Landsbanki Íslands hf. in London and Amsterdam. The cases were selected as test cases and serve as precedents for over 200 similar disputes.
The Supreme Court upheld the conclusion of the Reykjavík District Court that wholesale deposits were considered deposits in the understanding of Act No. 98/1999, on Deposit Guarantees and an Investor-Compensation Scheme. The Supreme Court also confirmed the legality of statutory provisions on the priority of deposits, which are therefore binding. The conclusion of the District Court, that UK and Dutch law should apply on the entitlement to interest. The Supreme Court upheld the decision of the Winding-up Board that the claims of the UK wholesale depositors should not bear default interest after their due date but accepted the claims of the Dutch wholesale depositors that their claims should bear penalty interest from their due date until 22 April 2009. All claims for costs were rejected.
These verdicts comprise final resolution of the disputes in the winding-up proceedings of Landsbanki Íslands hf.
English translation of the official abstract of Supreme Court judgement in 7 cases concerning 2 Dutch and 5 UK wholesale deposits can be found below: