Haya Rashed Al Khalifa wins a momentous case on financial derivatives with the largest judgment award in the history of Bahrain

May - 2015

 May 2015

 Haya Rashed Al Khalifa wins a momentous case on financial derivatives with the largest judgment award in the history of Bahrain

On 28 April 2015, the 5th High Civil Court of Bahrain issued its judgment in a case which has been dubbed as ‘One of the biggest and most profound banking cases’ in the history of the Bahraini judiciary. The court adjudicated upon several financial derivative transactions and ruled in favour of the plaintiff (a bank under administration) thereby ordering the first defendant (a leading businessman) to pay up to BHD 291,000,000 (US$777,000,000) to the plaintiff.

The 5th High Civil Court under the chairmanship of Judge Mohammed Al Shaikh Isa Bo Basheet and the membership of Judges Hassan Mohamed Hzaimh and Musa Al Musa ruled that the first defendant make a payment of the following sums of money in relation to the respective financial derivatives transactions (i) Saudi Riyal 1,179,450,000 (ii) GBP £53,239,602 (iii) Kuwaiti Dinar 31,690,885 (iv) US$200.655.000 (v) US$19,215,301, and (vi) Saudi Riyal 93,436,037  (or its equivalent in Bahraini Dinars from the date of accrual quotient on 7/9/2009) and legal interest rate of 1% from the date of bringing the claim and until full settlement. The total amount is in the range of BHD 291,241,967 (Two hundred and ninety one million, two hundred and forty one thousand nine hundred and sixty-seven dinars)

Haya Rashed Al Khalifa Attorneys led by Principal Partner, Sheikha Haya Rashed Al Khalifa, acted as counsel for the plaintiff and successfully litigated this case over 6 years.  This case involved complex disputed financial derivatives transactions (Put Options) that have never been adjudicated before any court in the Arab Gulf states and the Bahrain Court was able to set a remarkably legitimate groundbreaking legal precedent that will stand the test of time and be a model for other jurisdictions in the region for years to come.  Accordingly, this court ruling further illustrates the sophistication of Bahrain’s legal system and financial industry and unequivocally affirms its well-deserved status as an international financial hub.

Sheikha Haya Rashed Al Khalifa noted that this outcome was an exceptional achievement and the result of the Haya Rashed Al Khalifa’s litigation team’s diligence and adeptness in Banking Litigation.  This case certainly confirms why major financial institutional clients have absolute confidence in Haya Rashed Al Khalifa’s expertise in Financial Transactions.