Bank Sarasin Judgment: Quantum Issues Including US-style Multiple Damages

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Analysis

The high cost of mis-selling in the DIFC: the Bank Sarasin case (Part Two) and the first DIFC award of (US-style) multiple or punitive damages

Introduction

On 7 October 2015, the DIFC Court of First Instance issued its judgment on quantum issues in the latest instalment of the Bank Sarasin case. The decision is important for a number of reasons, not least because:

  1. it is one of the largest successful mis-selling claims seen in the region with the DIFC Court determining quantum and ordering the combined payment of damages of US$59,611,899 (in addition to previous interim payments of circa US $11.5m) by Bank Sarasin-Alpen in the DIFC and its Swiss parent entity; and

  2. for the first time the DIFC Court awarded multiple (or punitive) damages based on the deliberate conduct of Sarasin-Alpen and confirmed that in applying DIFC Law it will follow the US approach to such damages, rather than the more conservative principles under English law. In effect, this doubled Sarasin-Alpen's liability for certain heads of compensation awarded.