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Clifford Chance’s third-party £130m professional negligence claim settles

The high profile £130m derivatives dispute between JP Morgan and German public transport provider BVG, during which Clifford Chance (CC) was brought in as a third-party defendant over allegations of professional negligence, has settled.

The claim arose out of a derivatives contract entered into shortly before the financial crisis.

BVG argued that it should never have entered into the contract, did not understand it and alleged that it was misled by JP Morgan.

CC was adjoined to the proceedings on 23 April last year as a third-party defendant by BVG over further allegations that its German operation also gave negligent advice in relation to the transaction. The Magic Circle firm denied the allegations.

JPMorgan went on to sue BVG in the High Court for $204m plus interest, where the trial began on 13 January. The trial was expected to last until 16 April but settled last week.

JP Morgan was represented in Court by One Essex Court’s Laurence Rabinowitz QC and Fountain Court’s Richard Handyside QC, instructed by Linklaters litigation partner Kathryn Ludlow.

Defending BVG was Brick Court Chambers ‘ Tim Lord QC, Simon Salzedo QC, Simon Birt and Richard Blakeley, who were instructed by Addleshaw Goddard partner Michael Barnett.

Clifford Chance was represented by Essex Court Chambers’ David Foxton QC, Stephen Houseman QC and Tom Ford, who instructed by Clyde & Co partner Richard Harrison.

CC declined to comment.